to see our latest Market Watch

January 30, 2015
Global Markets Research
Daily Market Highlights
Key Takeaways
Overnight Economic Data
US
Better than expected initial jobless claims that fell to a near 15-year low reaffirmed solid
EU
recovery in the US job market and bolstered expectations the Fed rate normalization remains
UK
on track. Sentiments also turned less negative in the Eurozone but UK housing and sales
Japan
data disappointed. The string of Japanese data released this morning came in mixed with
Australia
improvement in the job market but overall household spending continued to contract, pointing to
New Zealand
a still bleak growth outlook.
The Dollar Index extended its climb for a 2nd straight day to 94.78 at close, suggesting the
Government Bond Yield
much anticipation consolidation in the dollar is coming in much slower and milder than expected.
3-year
3.54
weakness to close at 3.6285, its weakest in almost 6 years. No change to our bearish view on
5-year
3.71
the MYR in the near term, especially amid a firm USD and ahead of the long weekend.
7-year
3.78
10-year
3.84
15-year
4.12
On the local front, the MYR tested new intraday high of 3.6355 before recouping some
MYR
Local govvies ended mixed albeit robust trading volume worth RM4.46b. As much
anticipated, the reopening of RM3.0b MGS 10/17 attracted healthy BTC of 2.59x, with
tender results coming in at low, average and high of 3.530%, 3.542% and 3.548%
respectively. MGS 10/17 replaces as the new benchmark 3-year MGS. Reinforced views
on OPR pause and benign inflation outlook as hinted by language of latest January MPC
statement prompts bargain hunting interest. Additionally, ECB recent announcement on
QE seemingly amplified the appeal of higher yielding EM assets, including MYR bonds in
line with the regional theme. With OPR expected to remain unchanged, we expect
short-end yields to remain well anchored for now, with prospects of investors of
extending out the curve on lower than expected inflation forecast, amid subdued oil
prices.
UST
20-year
4.31
30-year
4.60
2-year
0.52
5-year
1.27
10-year
1.75
30-year
2.32
Daily Supports - Resistances
What’s Coming Up Next
Major Data
MY foreign reserves
US 4Q GDP, Chicago PMI, Uni Michigan consumer confidence
EU CPI estimate, jobless rate
UK net consumer credit, mortgage approvals
Japan housing starts
SG unemployment rate
Major Events
Nil
Bond Tender
Nil
S2
S1
Indicative
R1
R2
EURUSD
1.1228
1.1309
1.1328
1.1374
1.1439
USDJPY
117.25
117.85
118.23
118.44
118.80
GBPUSD
1.5017
1.5057
1.5077
1.5120
1.5160
AUDUSD
0.7700
0.7720
0.7780
0.7879
0.7928
EURGBP
0.7405
0.7467
0.7514
0.7570
0.7606
USDMYR
3.6155
3.6239
3.6300
3.630
3.6375
EURMYR
4.0854
4.0933
4.1135
4.1187
4.1200
JPYMYR
3.0511
3.0649
3.0720
3.0786
3.0909
GBPMYR
5.4511
5.4648
5.4728
5.4817
5.4900
SGDMYR
2.6761
2.6794
2.6835
2.6870
2.6938
AUDMYR
2.8200
2.8225
2.8246
2.8300
2.8403
NZDMYR
2.6350
2.6375
2.6393
2.6450
2.6500
= above 0.1% gain
= above 0.1% loss
Name
KLCI
Dow Jones Ind.
Last Price
DoD %
YTD %
1782.2
-0.8
1.2
Name
CRB Index
Outlook
= less than 0.1% gain / loss
Last Price
DoD %
YTD %
212.6
-1.1
-7.5
17416.9
1.3
-2.3
WTI oil ($/bbl)
44.5
0.2
-16.4
S&P 500
2021.3
1.0
-1.8
Brent oil ($/bbl)
49.1
1.4
-14.3
FTSE 100
6810.6
-0.2
3.7
Gold (S/oz)
1257.4
-2.1
6.4
Shanghai
3262.3
-1.3
0.9
CPO (RM/tonne)
2198.0
1.4
-4.3
24595.9
-1.1
4.2
Copper ($/tonne)
5395.0
-1.6
-14.4
3419.1
0.0
1.6
Rubber (sen/kg)
365.5
0.0
-3.2
Hang Seng
STI
Source: Bloomberg
1
Macroeconomics
•
Economic Data
US initial jobless claims
US pending home sales
EU business climate
EU consumer confidence
EU economic confidence
UK nationwide house
prices
UK CBI reported sales
UK GfK consumer
confidence
JP jobless rate
JP overall household
spending
JP Natl CPI YOY
JP industrial production
AU PPI YOY
NZ building permits MOM
For
Actual
Last
Survey
24-Jan
Dec
Jan
Jan F
Jan
265K
-3.7%
0.16
-8.5
101.2
308K
0.6%
0.15
-8.5
100.6
300K
0.5%
0.12
-8.5
101.6
Jan
6.8%
7.2%
6.6%
32
Jan
39
61
Jan
1
-4
-2
Dec
3.4%
3.5%
3.5%
Dec
-3.4%
-2.5%
-2.3%
Dec
Dec P
4Q
Dec
2.4%
1.0%
1.1%
-2.1%
2.4%
-0.5%
1.2%
10.5%
2.3%
1.2%
---
Overnight economic releases were mixed. The bigger than expected
fall in initial jobless claims to 265K for the week ended 24-Jan
confirmed solid recovery in the US job market that is expected to
keep the Fed rate normalization on track. Housing indicators
however continued to remain soft, with pending home sales
unexpectedly fell 3.7% MOM in December.
•
Sentiments in the Eurozone exhibited a more upbeat tone, offering
some reprieve the Euro region economy could see more signs of life
ahead. Economic confidence picked up albeit at a smaller than
expected pace to 101.2 in January while biz climate indicator
jumped to 0.16. Final print of consumer confidence also showed an
improvement to -8.5 in January.
•
On the contrary, UK data looks more disappointing. The increase in
Nationwide house prices showed a 5th straight month of moderation
to 6.8% YOY in January, confirming a softening housing market. CBI
reported sales on the other hand also posted a much softer print of
39 in January, normalizing from past month’s jump to its highest
since 1988. On the contrary, this morning’s GfK consumer
confidence came in more positive, surprisingly halted four straight
months of negative reading and reported a positive print in January,
lifted mainly improved personal finances outlook and less
Source: Bloomberg
pessimistic economic outlook over the next 12 months.
•
Back in Asia, the string of Japanese data released this morning
came in mixed. On the positive side, jobless rate unexpectedly
tapered off to 3.4% in December, lowest since Aug-97. Industrial
production rebounded albeit less than expected to increase 1.0%
MOM in December, as a rebound in shipment offset declines in
inventories. On the contrary, overall household spending fell at a
faster than expected pace of 3.4% YOY in December, as spending
fell across most categories except the basic needs in housing,
medical care and education. In a separate release, national CPI
sustained a 2.4% YOY increase in December, and core CPI ex-food
and energy also maintained a 2.1% YOY increase, easing some
deflationary concern.
•
In Australia, PPI gain moderated a notch to 1.1% YOY and 0.1%
QOQ in 4Q, in line with softer price momentum seen in CPI and
marked its softest YOY increase in nine quarters. The softer price
gain was mainly dragged by a fall in domestic prices that offset
higher imported prices as the Aussie weakens.
•
Down in New Zealand, building permits took a turn and fell 2.1%
MOM in December, pulling back after the strong double-digit gains
the previous two months. However, approvals in 2014 rose to the
highest since 2007, reflective of continuous rebuilding efforts.
2
Economic Calendar Release Date
Country
Date
Event
US
01/30
GDP Annualized QoQ
Chicago Purchasing Manager
U. of Mich. Sentiment
02/02
EU
01/30
UK
JP
Prior
Revised
3.10%
5.00%
--
Jan
57.5
58.8
--
Jan F
98.2
98.2
--
Personal Income
Dec
0.2%
0.40%
--
Personal Spending
Dec
-0.3%
0.60%
--
PCE Core MoM
Dec
0.0%
0.00%
--
Markit US Manufacturing PMI
Jan F
--
53.7
--
Construction Spending MoM
Dec
0.7%
-0.30%
--
ISM Manufacturing
Jan
55.0
55.5
--
Unemployment Rate
Dec
11.50%
11.50%
--
CPI Estimate YoY
Jan
-0.5%
-0.20%
--
Jan F
--
51.0
--
Markit Eurozone Manufacturing PMI
01/30
GfK Consumer Confidence
Jan
-2
-4
--
Net Consumer Credit
Dec
1.2B
1.3B
--
Mortgage Approvals
Dec
59.0K
59.0K
--
02/02
Markit UK PMI Manufacturing SA
Jan
--
52.5
--
01/30
Housing Starts YoY
Dec
-14.80%
-14.30%
--
Construction Orders YoY
Dec
--
16.90%
--
Jan F
--
52.1
--
Manufacturing PMI
Jan
50.2
50.1
--
Non-manufacturing PMI
Jan
--
54.1
--
02/01
HK
Survey
4Q A
0202
02/02
CH
Reporting Period
Markit/JMMA Japan Manufacturing PMI
02/02
HSBC China Manufacturing PMI
Jan F
49.8
49.8
--
02/02
Retail Sales Value YoY
Dec
--
4.10%
--
SI
01/30
Unemployment rate SA
4Q P
2.0%
2.00%
--
VN
02/02
HSBC Vietnam Manufacturing PMI
Jan
--
52.7
--
AU
02/02
AiG Perf of Mfg Index
Jan
--
46.9
--
Source: Bloomberg
3
Forex
MYR
FX Table
Name
• MYR continued its losing streak yesterday, pulling back 0.59% against the
USD, 1.08% against GBP and 0.80% against AUD. With the exception of the
0.14% strengthening against SGD, MYR continued to be weighed down by
low commodity prices.
Last Price
DoD %
High
Low
YTD %
EURUSD
1.1320
-0.83
1.1383
1.1276
-6.7
USDJPY
118.29
-0.28
118.26
117.26
-1.8
GBPUSD
1.5067
-0.38
1.5219
1.5131
-2.8
AUDUSD
0.7762
-0.60
0.8025
0.7884
-3.5
EURGBP
0.7513
-0.44 0.74971
0.7446
-4.0
USDMYR
3.6285
0.59
3.6265
3.6000
3.7
gold prices were near two weeks low. Even as other nations are cutting
EURMYR
4.0958
0.58
4.1193
4.0912
-3.5
interest rates or maintaining loose monetary stance, wide expectation of the
JPYMYR
3.0676
0.87
3.0851
3.0513
5.3
GBPMYR
5.4848
1.08
5.5013
5.4674
0.6
SGDMYR
2.6843
-0.14
2.6421
2.6421
1.0
AUDMYR
2.8406
0.80
2.9045
2.8497
-0.3
NZDMYR
2.6463
0.69
2.7071
2.6804
-3.3
• Going into today’s trading, we expect MYR to remain a tad bearish but
mostly sideways.
USD
• USD remained the front runner among its peers, as dollar index climbed to
its highest close for more than 10 years. US stocks continued to rally while
Fed raising interest rates sometime this year on the back of solid
fundamentals have sent USD to record high.
• USD will likely be bullish amid robust recovery of the economy, until further
data releases prove otherwise.
EUR
• EUR traded 0.83% lower against GBP and USD in yesterday’s trading
Source: Bloomberg
session. Germany’s CPI for Jan contracted 0.3% yoy compared to the
0.2% in Dec, while unemployment was unchanged at 6.5%. Modest price
level in euro’s largest economy strengthens the case for structural reforms
in the euro zone for price level to pick up again.
MYR vs Major Counterparts (% DOD)
• We expect EUR to rangetrade today.
AUD
-1.68
CHF
GBP
JPY
• GBP lost some grounds to USD amid disappointing data release yesterday.
-0.17GBP
House prices moderated for 5 consecutive months and sales numbers were
-1.23
-0.35
-0.16EUR
HKD
CNY
SGD
USD
-2.00
-1.50
-1.00
-0.50
0.00
unimpressive. The currency weakened against 5G10.
• GBP is expected to weaken against USD.
0.06
0.08
0.20
0.28
0.50
JPY
• JPY fell 0.28% against the greenback, reversing some of the previous day
gain. JPY will be supported by prolonged geopolitical tension in UkraineRussia and uncertainties in other region but dampened by the seemingly
lackluster impacts of Abenomics.
• JPY will likely be bearish amid the strong greenback
AUD
• AUD continued to decline against the greenback. Like other commodity
currencies, we had seen pullback in AUD amid falling oil and coal prices.
Lack of solid data will keep AUD on the bearish side.
• We opine that AUD will remain soft against USD.
SGD
• SGD continued to see selling pressure, largely impacted by MAS monetary
policy stance.
• Against MYR, we maintain that our local currency will outperform SGD.
4
Fixed Income
US T
US Treasuries
T e nure
C lo s ing ( %)
2-yr UST
0.52
C hg ( bps )
2
5-yr UST
1.27
-2
• UST ended mixed, paring some of its earlier gains as data on
10-yr UST
1.75
3
30-yr UST
2.32
2
decline in jobless claims supported the Fed’s outlook that the US
labour market appears to be improving on a steadier path to
recovery. The Fed had commented that it was encouraged by
strong job gains and solid economic expansion, whilst
maintaining its pledge to remain patient on interest rate
M GS
G II*
T e nure
C lo s ing ( %)
C hg ( bps )
C lo s ing ( %)
3-yr
3.54
3
3.70
C hg ( bps )
1
5-yr
3.71
4
3.85
0
7-yr
3.78
-1
3.99
2
10-yr
3.84
1
4.11
-2
15-yr
4.12
-2
4.31
0
20-yr
4.31
-4
4.59
0
30-yr
4.60
0
normalization. All eyes on US 4Q GDP release tonight. Upside
surprises in growth data may influence bond yields to edge a tad
higher.
MGS
* M arket indicative levels
• Local govvies ended mixed albeit robust trading volume worth
RM4.46b traded. As much anticipated, the reopening of RM3.0b
MGS 10/17 attracted healthy BTC of 2.59x, with tenders results
coming in at low, average and high of 3.530%, 3.542% and
3.548% respectively. MGS 10/17 replaces as the new
benchmark 3-year MGS.
M Y R IR S Le v e ls
IR S
C lo s ing ( %)
1-yr
3.73
-1
3-yr
3.78
2
5-yr
3.85
1
7-yr
3.97
2
10-yr
4.05
3
C hg ( bps )
So urce : B lo o mberg
Daily Trades Government Bonds
Securities
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
MGS
GII
GII
GII
GII
GII
GII
GII
SPK
2/15
8/15
7/16
9/16
3/17
9/17
10/17
2/18
7/19
10/19
11/19
3/20
7/20
7/21
9/21
8/22
7/24
4/26
3/27
4/30
4/32
4/33
9/43
8/17
11/17
10/18
5/20
7/22
5/24
12/28
2/24
Closing
YTM
Vol
(RM mil)
Previous
YTM
3.281
3.269
3.386
3.358
3.502
3.577
3.541
3.638
3.713
3.711
3.734
3.750
3.797
3.850
3.783
3.865
3.844
3.973
4.076
4.118
4.242
4.311
4.604
3.750
3.703
3.787
4.021
3.990
4.105
4.314
4.231
135
12
495
71
7
19
1635
50
3
147
30
21
32
5
210
20
160
4
2
40
1
8
10
10
8
30
30
460
750
10
50
4465
3.268
3.295
3.380
3.429
3.491
3.567
3.582
3.641
3.795
3.676
3.805
3.812
3.798
3.842
3.783
3.974
3.832
4.023
4.215
4.123
4.267
4.348
4.604
3.809
3.695
3.787
4.157
3.970
4.115
4.314
4.261
Source : BPAM
5
Previous
Trade Date
(dd/mm/yyyy)
27/01/2015
28/01/2015
28/01/2015
28/01/2015
28/01/2015
28/01/2015
28/01/2015
28/01/2015
26/01/2015
28/01/2015
28/01/2015
28/01/2015
28/01/2015
28/01/2015
28/01/2015
26/01/2015
28/01/2015
28/01/2015
27/01/2015
28/01/2015
28/01/2015
27/01/2015
28/01/2015
12/01/2015
27/01/2015
21/11/2014
10/12/2014
28/01/2015
28/01/2015
28/01/2015
28/01/2015
Chg
(bp)
1
-3
1
-7
1
1
-4
0
-8
3
-7
-6
0
1
0
-11
1
-5
-14
0
-3
-4
0
-6
1
0
-14
2
-1
0
-3
• Reinforced views on OPR pause and benign inflation outlook as
hinted by language of latest January MPC statement prompts
bargain hunting interest. Additionally, ECB recent announcement
on QE seemingly amplified the appeal of higher yielding EM
assets, including MYR bonds in line with the regional theme.
With OPR expected to remain unchanged, we expect short-end
yields to remain well anchored for now, with prospects of
investors of extending out the curve on lower than expected
inflation forecast, amid subdued oil prices.
PDS/Sukuk
• On a similar note, trading interest in PDS garnered traction with
total transacted amount surging higher to reach RM707m
yesterday. Active trading seen on GG bonds following the recent
compression in MGS yields. We saw Prasa ’18 ending tighter to
close at 3.89%, whilst DanaInfra’29 compressed lower to trade at
4.60%. Other notable trades include a slew of Boustead Holding
bonds maturing 2015-2017 with collective volume of RM35m
done. Interestingly we saw AAA rated Rantau Abang bonds
maturing ’29-’31 and Danga’30 traded tighter, as attractive credit
spreads versus compressed MGS yields seen luring interest.
Yields seen compressed lower to end at 4.78%, 4.88% and
4.80% respectively.
Daily Trades: PDS / Sukuk
Securities
Rating
Closing
YTM
Vol
(RM mil)
Previous
YTM
Syarikat Prasarana Negara Berhad
5/18
GovCo Holdings Berhad
2/21
Syarikat Prasarana Negara Berhad
8/21
Khazanah Nasional Berhad
8/24
Bank Pembangunan Malaysia Berhad
9/24
Turus Pesawat Sdn Berhad
11/24
DanaInfra Nasional Berhad
7/29
Bank Pembangunan Malaysia Berhad
9/29
DanaInfra Nasional Berhad
4/34
Symphony Life Berhad [fka Bolton Berhad]
11/18
Boustead Holdings Berhad
11/15
Boustead Holdings Berhad
6/16
Boustead Holdings Berhad
1/17
BJ Corporation Sdn Berhad
3/20
Danga Capital Berhad
4/15
Cagamas Berhad
6/15
Cagamas MBS Berhad
8/15
Cagamas Berhad
1/16
Sime Darby Berhad
11/16
Inverfin Sdn Berhad
2/18
HSBC Amanah Malaysia Berhad
10/19
Putrajaya Holdings Sdn Berhad
9/20
Cagamas Berhad
10/20
Putrajaya Holdings Sdn Berhad
9/23
Aman Sukuk Berhad
5/24
Rantau Abang Capital Berhad
3/29
Rantau Abang Capital Berhad
5/31
Danga Capital Berhad
1/30
Sabah Development Bank Berhad
9/15
Sabah Development Bank Berhad
9/15
OCBC Bank (Malaysia) Berhad
8/17
Malayan Banking Berhad
1/19
YTL Power International Berhad
10/21
YTL Power International Berhad
10/24
Maybank Islamic Berhad
3/16
CIMB Bank Berhad
8/16
CIMB Bank Berhad
11/17
Tropicana Corporation Berhad [fka Dijaya Corporation Berhad]
11/17
Konsortium ProHAWK Sdn Berhad
12/20
ORIX Leasing Malaysia Berhad
4/15
AMMB Holdings Berhad
8/17
Edaran SWM Sdn Berhad
10/18
BGSM Management Sdn Berhad
12/19
Edaran SWM Sdn Berhad
10/22
BGSM Management Sdn Berhad
12/23
Tanjung Bin Energy Issuer Berhad
3/32
Kimanis Power Sdn Berhad
8/20
RHB Bank Berhad
12/19
GG
GG
GG
GG
GG
GG
GG
GG
GG
AAA (FG)
AAA (BG)
AAA (BG)
AAA (BG)
AAA (BG)
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AAA
AA1
AA1
AA1
AA1
AA1
AA1
AA+
AA+
AA+
AA2
AA2
AA3
AA3
AA3
AA3
AA3
AA3
AA3
AAA1
3.899
4.204
4.221
4.432
4.400
4.440
4.600
4.550
4.789
4.550
4.005
4.201
4.300
4.500
3.926
3.857
3.792
3.916
3.850
4.361
4.233
4.342
4.240
4.528
4.597
4.780
4.880
4.799
4.229
4.230
4.331
4.719
4.949
5.199
4.014
4.452
5.151
4.550
4.530
4.130
4.870
4.737
4.668
5.177
5.109
5.640
4.598
5.032
5
50
8
50
20
5
10
10
40
13
8
10
17
20
1
30
5
10
20
5
20
10
5
5
20
30
20
20
1
0
5
2
35
35
50
10
1
20
10
5
0
10
1
10
30
5
5
5
707
3.956
4.178
4.221
4.432
4.453
4.850
4.789
4.774
4.321
3.843
3.969
4.316
3.598
3.400
3.775
3.866
4.364
4.195
4.347
3.820
4.630
4.654
4.809
4.950
4.790
4.265
4.069
4.335
4.527
4.910
5.101
4.072
4.329
5.150
4.298
4.111
4.351
5.201
4.699
5.427
5.138
5.650
4.601
5.034
Previous
Trade Date
(dd/mm/yyyy)
19/01/2015
10/10/2014
27/01/2015
28/01/2015
20/08/2014
16/12/2014
16/12/2014
13/11/2014
25/11/2014
27/01/2015
25/11/2014
25/11/2014
28/01/2015
26/06/2013
14/10/2014
23/01/2015
28/01/2015
27/01/2015
21/01/2015
04/10/2012
16/01/2015
26/01/2015
26/01/2015
16/12/2014
19/01/2015
12/12/2014
28/01/2015
15/01/2015
28/01/2015
23/01/2015
05/01/2015
10/10/2014
27/01/2015
25/11/2014
23/01/2015
12/12/2014
16/12/2014
02/01/2015
26/01/2015
20/01/2015
21/01/2015
27/01/2015
28/01/2015
Chg
(bp)
-6
3
0
0
-1
-25
-24
1
23
16
23
18
33
46
2
-2
0
4
-1
42
-10
-6
-3
-7
-4
16
0
19
4
10
-6
12
0
25
2
52
-46
-3
-25
-3
-1
0
0
Spread
Against
IRS**
12
30
27
38
35
39
40
35
59
74
27
46
54
66
19
12
5
18
9
58
39
44
34
55
55
58
68
75
49
49
55
91
99
115
27
69
137
77
63
39
109
93
82
120
113
144
69
119
** spread against nearest indicative tenured IRS
Source : BPAM
Market/Corporate News: What’s Brewing
Moody's Investors Service has affirmed A3 issuer rating to Malaysia Airport Holdings
Bhd (MAHB) with a positive rating outlook. "MAHB's positive rating outlook reflects
Moody's positive rating outlook for the Malaysian sovereign as well as MAHB's important
policy role and contributions to Malaysia's tourism, export and aviation industries," it said.
However, the rating agency has lowered the airport operator's baseline credit assessment to
baa2 from baa1, reflecting the company's weaker standalone credit quality. This is following
the completion of a 40 per cent stake acquisition in Istanbul's second-largest airport by
passenger traffic, Sabiha Gokcen International Airport (SGIA), in December last year, bringing
MAHB's total stake in SGIA to 100 per cent. "Moody's expects that the full consolidation of
SGIA into MAHB will result in a 30 per cent increase in adjusted debt," it said. It said MAHB
still managed to record a passenger traffic growth of five per cent for the financial year ended
Dec 31, 2014 despite a series of airline disasters last year involving its key airline operators.
However, it said passenger traffic growth is expected to fall between 1.5 per cent and three
6
per cent this year. Moody's said downgrade pressure on MAHB's rating is unlikely, given the
positive outlook, but the company's rating could be downgraded if the government's rating is
downgraded, which is unlikely for at least over the next 12 months. (Source: Bloomberg)
Oil prices should reach a long-term equilibrium of $90 per barrel, Royal Dutch Shell's
Chief Executive Ben van Beurden told a conference call on Thursday. He said it was
impossible to predict when prices would return to those levels and said oil prices were poised
to remain volatile in the mid-term. Royal Dutch Shell shares fell on Thursday after the oil
company missed profit expectations and announced a three-year, $15 billion cut in spending
reflecting a steep fall in oil prices. Van Beurden however warned against an over reaction to
the 60 percent drop in oil prices since June, while keeping dividends unchanged to soothe
investors. (Source: The Star)
Rating Actions
Issuer
PDS Description
Cerah Sama Sdn Bhd
RM420m sukuk under the RM750m Sukuk Musharakah
Programme
Sources: RAM, MARC
7
Rating/Outlook
Action
AA-IS/ Stable
Affirmed
Hong Leong Bank Berhad
Fixed Income & Economic Research, Global Markets
Level 6, Wisma Hong Leong
18, Jalan Perak
50450 Kuala Lumpur
Tel: 603-2773 0469
Fax: 603-2164 9305
Email: [email protected]
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