BPAM: The Bond Index Monthly Report for May 2011 is now available.

These reports give an instant snapshot on the performance of our key bond indices in an easy-to-read and understand format. These reports are also accessible on our Commentary & Research pages under "BPAM Research -> BPAM Bond Index Reports"

www.bpam.com.my

BPA Malaysia Ringgit Bond Index overview as at end of April 2011

A rating action affecting the water industry had a major impact on the performance of the corporate bond and sukuk groups. The downgrade by MARC on 6th April 2011 of most of the water utility players caused a drop in value of RM1.052 billion from the market. Despite the sharp drop in the corporate market, the Government bond market rallied.

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Bond Index Monthly Report - January 2011 - Returns in the Malaysian bond market were mixed

Returns in the Malaysian bond market were mixed. Some bond classes fared better while others did not. Government Bonds improved when compared to the returns registered in December 2010 but Corporate Bonds returns moved in the opposite direction. Due to the concerns of the market of another rate hike by BNM, the yield for the bond market has been pushed higher. However, the status-quo in the Malaysian Overnight Policy Rate by BNM on 27 January 2011 did help reverse the hawkish market sentiment hence reducing the yields of the Government papers. Although this has an effect of improving the returns for government bonds, the same has yet to be seen for the corporate bond which tends to lag the Government papers.
Bond Index Monthly Report - January 2011; by Bond Pricing Agency Malaysia

Bond Index Monthly Report for December 2010 by Bond Pricing Agency Malaysia

Bond Index Monthly Report - Extended Dec 2010

Malaysian Bond Index Performance to date - going higher!

MORE?

Below is the performance of the Malaysian bond market as tracked by the BPA Malaysia All Bond Index, BPA Malaysia Islamic All Bond Index and the BPA Malaysia Conventional All bond Index.

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As you can see the performance of all the indexes are positive. Interestingly, Islamic sukuks or bonds generate the best return compared to conventional bonds.