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Wednesday, May 31, 2017
Equities slipped along with the USD on the back of a marginal decline in the Conference Board Consumer Confidence to 117.9 fro
MARC has placed its BBB+IS sukuk rating on Alam Maritim Resources Berhad’s (Alam Maritim) RM500 million Sukuk Ijarah Medium-Term Note Programme on MARCWatch Negative.
Posted Date: May 30, 2017
MARC has placed its BBB+IS sukuk rating on Alam Maritim
Resources Berhad’s (Alam Maritim) RM500 million Sukuk Ijarah Medium-Term Note
Programme on MARCWatch Negative. The current outstanding amount under the rated
programme is RM75 million, of which RM30 million is due in July 2017.
The rating action highlights increased risk of missed
payments or a distressed exchange on Alam Maritim’s sukuk upon the company
entering into Corporate Debt Restructuring Committee (CDRC) mediated
negotiations with its lenders and sukukholders. Alam Maritim announced to Bursa
Malaysia on May 26, 2017 that it had received approval from CDRC on its
application for the latter’s assistance to mediate the aforementioned debt
restructure. The CDRC, which is under the purview of Bank Negara Malaysia, has
issued a standstill letter to creditors, including the sukuk trustee, while
Alam Maritim is required to submit a proposed debt restructuring scheme within
60 days from the approval letter.
Alam Maritim’s sinking fund stood at RM25.3 milion as at
April 10, 2017 in relation to its forthcoming scheduled payment of RM30 million
in July 2017. The rating agency had been maintaining a negative outlook on the
rating since March 2016 in view of Alam Maritim’s declining liquidity buffer,
compounded by slow replenishment of its order book. While the order book has
shown some improvement in recent months, weak cash flow generation has
continued to weigh on its financial performance. MARC will resolve the
MARCWatch Negative placement pending further clarity on Alam Maritim’s debt
restructuring programme.
Contacts:
Afeeq Amiri, +603-2082 2256/ afeeqamiri@marc.com.my,
Sharidan Salleh, +603-2082 2254/ sharidan@marc.com.my.
v Stronger than expected US economic data
|
Highlights
of today’s AmBank FX Daily Outlook as follow:-
|
|
v Stronger than
expected US economic data
v MYR to fluctuate in
the range of 4.2706-4.2919 against US dollar
v Key watch: (i) ECB’s
Cœuré and Fed’s Kaplan speeches; (ii) May UK Gfk consumer confidence; (iii)
May EU inflation rate; (iv) 1Q India GDP; (v) Apr Malaysia PPI
|
Thailand: The bond curve bear steepened as the 4-14-year bucket s (mainly LB21-23, LB26, and LB316A) rose 1-2 bps led by profit taking activity amongst local players. In addition, foreign investors were net sellers of of short- and long-term bonds at Bt254 million and Bt2.05 billion respectively. We view the rally in bonds attracted selling pressure before event risk such as NFP on Friday. Separately, in the Treasury Bill (TB) market, the BoT announced plan to reduce auction size to Bt5.0bi
Market
Roundup
- US Treasuries gained as core PCE inflation rose at 1.5% yoy in Apr or just meeting consensus expectation but which was also the lowest monthly increase since Mar last year. On the flipside, Fed governor Lael Brainard commented that a rate hike is likely to be appropriate. The yield curve flattened further with the 2x10 spread at 93bps overnight.
- Malaysia: MGS closed mildly weaker amid some pressure on MYR. Nonetheless, auction of the 7-year GII (GII Aug’24) saw firm demand at bid-cover-ratio of 2.48 times for the RM3.0 billion public tender (another RM1.0 billion privately placed). Average yield was 3.926% (and where highest to lowest range was 3.933/909%) which was lower against WI of 3.95/90% the day before.
- Thailand: The bond curve bear steepened as the 4-14-year bucket s (mainly LB21-23, LB26, and LB316A) rose 1-2 bps led by profit taking activity amongst local players. In addition, foreign investors were net sellers of of short- and long-term bonds at Bt254 million and Bt2.05 billion respectively. We view the rally in bonds attracted selling pressure before event risk such as NFP on Friday. Separately, in the Treasury Bill (TB) market, the BoT announced plan to reduce auction size to Bt5.0billion from about Bt20billion per auction which usually takes place every Monday. Consequently, short-term (less than 30 days) supply will substantially contract about Bt60 billion per month. This may be BoT’s effort to curb foreign fund inflows into short-term bonds and to slow the baht's appreciation.
- Indonesia: Indonesia government bonds were traded slightly weaker on Tuesday in light trading volume. In general, the move was sideways amid thin activities with local names as net sellers. MoF held a IDR Sharia bond auction with incoming bids relatively low at only IDR11 trillion. The government issued IDR4.08 trillion of Sharia bonds, lower than IDR5 trillion target. volume improved a tad to IDR8.8 trillion and was dominated by bonds maturing in over 10 years (42%) and maturing between 1 and 5 years (31%).
Bunds Dip as ECB Said to Consider Removing Easing Bias
|
RHB
FIC DAILY SNAPSHOT
|
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|
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|
5/31/2017 8:56
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|
|
|
|
|
|
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1-Day
|
3-Mth
|
6-Mth
|
|
|
30-May-17
|
29-May-17
|
Chg (%)
|
Avg
|
Avg
|
|
Commodities
|
|
|
|
|
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|
Brent
Crude Jul 17
|
51.84
|
52.29
|
-0.86
|
52.58
|
53.95
|
|
Brent
Crude Aug 17
|
52.24
|
52.64
|
-0.76
|
52.89
|
54.35
|
|
Brent
Crude Sep 17
|
52.51
|
52.89
|
-0.72
|
53.13
|
54.69
|
|
WTI
Crude Oil
|
49.66
|
49.80
|
-0.28
|
50.49
|
52.77
|
|
CPO
Future Jul 17
|
2,611
|
2,627
|
-0.61
|
2,746
|
2,922
|
|
CPO
Future Aug 17
|
2,504
|
2,516
|
-0.48
|
2,660
|
2,854
|
|
CPO
Future Sep 17
|
2,439
|
2,447
|
-0.33
|
2,602
|
2,800
|
|
GOLD
spot US$/Oz
|
1,263
|
1,270
|
-0.50
|
1,248
|
1,220
|
|
DJ-UBS
Metals Subindex
|
110.9
|
111.5
|
-0.47
|
113.3
|
113.6
|
|
DJ-UBS
Agriculture Subindex
|
50.33
|
50.94
|
-1.20
|
52.64
|
54.07
|
|
|
|
|
|
|
|
|
Forex
|
|
|
|
|
|
|
USD/MYR
|
4.283
|
4.272
|
0.24
|
4.387
|
4.420
|
|
GBP/USD
|
1.286
|
1.284
|
0.15
|
1.263
|
1.254
|
|
EUR/USD
|
1.119
|
1.116
|
0.20
|
1.082
|
1.071
|
|
USD/JPY
|
110.9
|
111.3
|
-0.38
|
111.8
|
113.3
|
|
AUD/USD
|
0.747
|
0.744
|
0.34
|
0.753
|
0.751
|
|
USD/SGD
|
1.384
|
1.386
|
-0.14
|
1.400
|
1.413
|
|
USD/HKD
|
7.793
|
7.794
|
-0.01
|
7.775
|
7.767
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|
USD/KRW
|
1,125
|
1,122
|
0.29
|
1,132
|
1,151
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|
USD/CNY
|
6.856
|
6.856
|
0.00
|
6.893
|
6.896
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|
USD/THB
|
34.13
|
34.11
|
0.05
|
34.60
|
35.01
|
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USD/IDR
|
13,323
|
13,320
|
0.02
|
13,323
|
13,348
|
|
USD/PHP
|
49.78
|
49.79
|
-0.03
|
49.99
|
49.91
|
|
USD/INR
|
64.67
|
64.50
|
0.26
|
64.99
|
66.36
|
|
|
|
|
|
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|
|
|
|
|
|
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|
Equity
Indices
|
|
|
|
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FBM
KLCI
|
1,765.3
|
1,764.9
|
0.03
|
1,748.8
|
1,708.9
|
|
DJIA
|
21,029.5
|
21,080.3
|
-0.24
|
20,818.0
|
20,410.1
|
|
S&P
500
|
2,412.9
|
2,415.8
|
-0.12
|
2,373.6
|
2,328.2
|
|
NASDAQ
|
6,203.2
|
6,210.2
|
-0.11
|
5,962.5
|
5,770.4
|
|
|
|
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|
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1-Day
|
3-Mth
|
6-Mth
|
|
Government
Bonds
|
30-May-17
|
29-May-17
|
Chg (bps)
|
Avg
|
Avg
|
|
MGS
3/19 (3y)
|
3.32
|
3.29
|
2.70
|
3.37
|
3.41
|
|
MGS
03/22 (5y)
|
3.56
|
3.56
|
0.40
|
3.73
|
3.73
|
|
MGS
09/24 (7y)
|
3.83
|
3.78
|
4.70
|
3.92
|
3.92
|
|
MGS
11/27 (10y)
|
3.89
|
3.87
|
1.60
|
3.87
|
3.87
|
|
MGS
04/33 (15y)
|
4.28
|
4.28
|
0.00
|
4.46
|
4.58
|
|
MGS
03/46 (30y)
|
4.76
|
4.76
|
0.00
|
4.78
|
4.77
|
|
UST
2YR
|
1.28
|
1.29
|
-1.00
|
1.28
|
1.23
|
|
UST
5YR
|
1.75
|
1.79
|
-3.45
|
1.89
|
1.90
|
|
UST
10YR
|
2.21
|
2.25
|
-3.67
|
2.36
|
2.40
|
|
UST30YR
|
2.88
|
2.91
|
-3.48
|
2.99
|
3.02
|
|
UK
2YR
|
0.08
|
0.09
|
-1.10
|
0.11
|
0.12
|
|
UK
10YR
|
0.99
|
1.01
|
-1.80
|
1.12
|
1.23
|
|
GE
2YR
|
-0.71
|
-0.72
|
1.00
|
-0.75
|
-0.76
|
|
GE
10YR
|
0.29
|
0.30
|
-0.60
|
0.34
|
0.33
|
|
JGB
2YR
|
-0.16
|
-0.17
|
0.30
|
-0.21
|
-0.21
|
|
JGB
10YR
|
0.04
|
0.04
|
0.40
|
0.05
|
0.06
|
|
AU
2YR
|
1.57
|
1.58
|
-1.40
|
1.71
|
1.77
|
|
AU
10YR
|
2.39
|
2.42
|
-2.40
|
2.64
|
2.70
|
|
SGS
2YR
|
1.20
|
1.21
|
-0.70
|
1.23
|
1.24
|
|
SGS
10YR
|
2.09
|
2.12
|
-2.80
|
2.21
|
2.28
|
|
HK
2YR
|
0.67
|
0.67
|
0.00
|
0.90
|
0.96
|
|
HK
10YR
|
1.32
|
1.32
|
0.00
|
1.61
|
1.72
|
|
SK
2YR
|
1.56
|
1.57
|
-0.70
|
1.60
|
1.61
|
|
SK
10YR
|
2.23
|
2.25
|
-2.00
|
2.22
|
2.18
|
|
CH
10YR
|
3.67
|
3.67
|
0.00
|
3.45
|
3.35
|
|
TH
2YR
|
1.51
|
1.50
|
1.00
|
1.51
|
1.53
|
|
TH
10YR
|
2.63
|
2.63
|
0.90
|
2.71
|
2.71
|
|
ID
2YR
|
6.55
|
6.54
|
0.80
|
6.71
|
6.95
|
|
ID
10YR
|
6.96
|
6.95
|
0.80
|
7.15
|
7.43
|
|
PH
2YR
|
2.82
|
2.88
|
-5.75
|
3.06
|
3.05
|
|
PH
10YR
|
4.62
|
4.63
|
-0.60
|
4.62
|
4.53
|
|
IN
2YR
|
6.63
|
6.66
|
-2.60
|
6.68
|
6.52
|
|
IN
10YR
|
6.66
|
6.67
|
-0.70
|
6.82
|
6.67
|
|
|
|
|
|
|
|
|
Daily
Headlines
|
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Malaysia
|
|
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Ringgit
Rally Approaches Short-Term Speed Bump After Strong Run
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Global
|
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USTs
Grind Higher as Positioning, Real Money Buying Underpins
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Fed’s
Brainard Says Soft Inflation May Warrant Rate Rethink
|
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China
Manufacturing Gauge Exceeds Estimates as Growth Holds Up
|
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Pound
Slumps After Poll Shows Conservatives May Miss a Majority
|
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Bunds
Dip as ECB Said to Consider Removing Easing Bias
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