Fixed Income Weekly Pulse

2 July 2012 • Positive surprise from EU Summit Research & Strategy

• US housing data beat expectations but US consumer spending and

sentiment stalled FIXED INCOME Highlights • German IFO sentiment declined; German parliament approved the Euro bailout SALES • China’s PMI was above expectations but show declining trend Tel: +603-2059 8690

• Singapore’s industrial production rebounded in May while Hong Kong’s RESEARCH May trade growth surprised on the upside Tel: +603-2036 1491 • Market was focus on development in the Eurozone; all eyes to be on Tel: +603-2036 1653 local trade data and MPC meeting this week bond-research@ • Foreign ownership of MGS holding up well ambankgroup.com

Market Performance & Review

Closing Yield Fri Mon Tue Wed Thu Fri w/w (bp) (%) 22 -Jun 25 -Jun 26 -Jun 27 -Jun 28 -Jun 29 -Jun MGS 3 -yr 3.07 3.07 3.07 3.08 3.04 3.07 0 MGS 5 -yr 3.19 3.20 3.20 3.20 3.20 3.20 1 MGS 7 -yr 3.38 3.38 3.37 3.37 3. 37 3.37 -1 MGS 10 -yr 3.50 3.50 3.47 3.51 3.51 3.46 -4 MGS 15 -yr 3.79 3.79 3.78 3.78 3.77 3.77 -2 MGS 20 -yr 4.03 4.02 4.01 4.01 3.99 3.98 -5

IRS 1 -yr 3.10 3.11 3.10 3.09 3.07 3.09 -1 IRS 3 -yr 3.13 3.13 3.12 3.12 3.09 3.11 -2 IRS 5 -yr 3.25 3.2 5 3.24 3.24 3.19 3.23 -2 IRS 7 -yr 3.38 3.40 3.38 3.38 3.32 3.37 -1 IRS 10 -yr 3.53 3.54 3.52 3.52 3.46 3.50 -2

Benchmark Curves Spread over MGS (based on BNM benchmark curves)

Tenure 3 5 7 10 15 Tenure 3 5 7 10 15

MGS 3.07 3.21 3.39 3.52 3.79 MGS - - - - - Swap 3.11 3.23 3.37 3.50 3.78 Swap 3 2 -3 -2 -1 AAA 3.56 3.87 4.10 4.37 4.68 AAA 49 66 70 86 89 AA1 3.83 4.13 4.38 4.76 5.13 AA1 75 92 99 124 134 AA2 4.09 4.44 4.80 5.20 5.67 AA2 101 124 141 168 188 AA3 4.34 4.78 5.12 5.54 6.14 AA3 127 157 173 202 235 A1 5.35 5.96 6.56 7.24 7.88 A1 227 275 317 373 409 A2 6.37 7.00 7.61 8.52 9.37 A2 330 380 422 500 558 A3 7.42 8.13 8.88 9.69 10.75 A3 435 492 549 618 696

The information provided in this document has been obtained or derived from sources believed to be reliable. AmBank (M) Bhd d oes not guarantee its accuracy or completeness, and does not assume any liability for any loss that may result from the reliance by any person upon any1 such information or opinion. Such information or opinions are subject to change without notice, are for general information only and is not intended as an offer to sell or a solicitation to buy any securities, foreign exchange or other product.

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MGS Indicative Yields MGS Intra-tenure Spreads 120.0 5.00%

100.0 4.50%

80.0 MGS 20-yr 4.00% 10/3 60.0 20/10 Yield

Bps 10/5 3.50% MGS 10-yr 40.0 MGS 5-yr MGS 3-yr 3.00% 20.0 5/3

2.50% 0.0

Spread against IRS (5-yr) Historical IRS Swap Rates 300 5.00% 280 A1 260 240 220 4.50% 200 180 160 AA3 bps 140 4.00%

120 AA2 Yield 100 AA1 80 IRS 10-yr 60 AAA 3.50% IRS 7-yr 40 20 IRS 5-yr 0 IRS 3-yr -20 3.00%

Positive surprise from EU Summit EU Summit produces positive surprise. The key announcements included a move to centralise banking supervision in a single body (ECB) by the end of 2012, and then recapitalisation of banking system directly through ESM. The EFSF/ESM are also set to support financial market stability, presumably via secondary (possibly primary) markets to support struggling sovereign bond markets. If ratified, these would be positive steps towards easing the euro zone debt crisis. However, the main initial concerns must be the lack of detail at present and concern over the lack of German comments given their hardline approach into the EU Summit. The EU Summit also resulted in Spain’s bailout debt being ranked pari passu with other sovereign debt and easier collateral for bail-out funds lowers bond yields. US hous ing data beat Early in the week, the US h ousing data beat market expectations. New US home sales rose at expectations but US consumer an annual rate of 369k in May, +7.6% m/m and a 2-year high. US Durables goods orders that spending and sentiment stalled merely met expectations also provided some impetus for risk-taking nibbling. However, towards the end of the week, US consumer spending stalled in May. Purchases were unchanged after a 0.1% rise from the prior month. Additionally, the University of Michigan sentiment index fell to 73.2 in June from 79.3 in May, below the projected reading of 74.1. The dour US economic data were largely ignored by the market following the EU summit news.

The information provided in this document has been obtained or derived from sources believed to be reliable. AmBank (M) Bhd d oes not guarantee its accuracy or completeness, and does not assume any liability for any loss that may result from the reliance by any person upon any such information or opinion. Such information or opinions are subject to change without notice, are for general information only and is 2 not intended as an offer to sell or a solicitation to buy any securities, foreign exchange or other product.

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German IFO se ntiment de clined; In Europe, earlier in the week, the focus was on the German IFO economic institute's closely German parliament approved the watched business climate index, which fell to 105.3 points in June from 106.9 points in May. In Euro bailout line with the sentiment, German inflation eased to 2% in June from 2.2% in May, the lowest since January 2011. Adding to the gloom of the Eurozone, Chancellor Angela Merkel hardened her resistance to euro-area debt sharing to resolve the region’s financial crisis. Over the weekend, Germany’s parliament approved the European Union’s fiscal pact and the permanent euro bailout fund but the opposition filed a lawsuit to prevent this from going forward. This was an important milestone, that would have rattled the markets had it not been approved. Look out for further lawsuits to have large impact on markets going forward. China’s PMI was above In Asia, China’s June flash business sentiment survey index eased to 51.9 from 54.4 in May but expectations but show declining the Conference Board leading index rose in May by 1.1% m/m from 0.9% in April. Similarly, the trend official Chinese PMI for June was 50.2, beating market expectations of 49.9, suggesting that manufacturing continues to expand, but at a slower pace. Some investors believe that China’s economy has bottomed, and will pick up strongly, supported by easier monetary policy and faster implementation of fiscal policy, with the expectation that the PBoC will cut RRR by 50bps soon. Singapore’s industrial production Closer to home, Singapore’s industrial production rebounded to 6.6% y/y in May boosted by rebounded in May pharmaceuticals output. Also following global inflation trend, Singapore’s May CPI inflation eased to 5.0% y/y from 5.4% in April. Housing inflation slowed 2.9% to 8.2%, while transport inflation rose 1.7% to 9.2%. Prices rose 0.2% in the month. Hong Kong’s May trade growth Hong Kong’s May trade growth surprised on the upside with exports rising 5.2% y/y, lower than surprised on the upside April’s 5.6% but beating the market consensus of 0.5%. Shipments to China and Japan increased 9.5% and 18.2%, respectively. Imports increased by 4.6%. The trade deficit narrowed to HKD35.6b. Market was focus on With the absence of macro data on the local front, focus was seen towards further development in the Eurozone; all developments in the Eurozone. Meanwhile, reopening of the 7-year GII garnered strong eyes to be on local trade data and demand with a bid-to-cover of 2.68 times at an average yield of 3.498%. For this week, we MPC meeting this week expect all eyes to be focusing on local trade data scheduled for release next Wednesday followed by MPC meeting on Thursday. We expect BNM to keep the current OPR level unchanged at 3.00% when policymakers meet this week on the view that current interest rates remain supportive of domestic growth.

Foreign ownership of MGS Foreign ownership of MGS appears to be holding up well despite the recent softening of MYR holding up well versus the greenback in tandem with other Asian currencies. Current ownership is about RM115b for the month of May, close to 39% of outstanding MGS. But pace of growth appears to be moderating compared to the same periods back in 2011 last year.

In the MGS/GII market, RM14.5b trades were transacted with a daily average trading volume of RM2.9b versus last week’s average of RM2.3b. During the week, most of the MGS benchmarks across maturity spectrum were traded between 1-5bps lower from the previous week. The 3-, 5-, 7-, 10-, 15- and 20-year benchmark MGS yields ended the day at 3.07%, 3.20%, 3.37%, 3.46%, 3.77% and 3.98% respectively.

In the PDS market, a total of RM2.3b worth of trades done with 59% coming from the GG/AAA segment, 38% from the AA segment and remaining balance from the single-A segment. For the week, daily average trade volume was RM464m, easing from the RM771m average seen in the previous week.

The information provided in this document has been obtained or derived from sources believed to be reliable. AmBank (M) Bhd d oes not guarantee its accuracy or completeness, and does not assume any liability for any loss that may result from the reliance by any person upon any such information or opinion. Such information or opinions are subject to change without notice, are for general information only and is 3 not intended as an offer to sell or a solicitation to buy any securities, foreign exchange or other product.

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In the GG/AAA segment, active trading interest was seen in PASB bonds maturing 2014-2019 with RM153m worth of trades done. Trading interest was also seen in the PLUS bonds maturing 2017-2028 with a total of RM170m worth of trades transacted. Meanwhile, Aman Sukuk bonds maturing 2018-2022 garnered RM160m of trading volume.

In the AA-segment, a slew of WCT bonds reported a collective RM90m trades changing hands. This was followed by Tanjung Bin Energy Issuer bonds that garnered RM86m trades and bonds maturing 2014-2019 with RM85m trades done. Within the single-A segment, trading interest was focused on the banking sector bonds. Bank Muamalat bonds garnered RM58m in trading volume with yields easing 2 bps to 4.23%.

Weekly Trades Stock Name Coupon Maturity Rating Closing Vol Previous Chg Spread Spread Trade Date Against Against % (mm/dd/yyyy) YTM (RM mil) YTM (bps) (mm/dd/yyyy) MGS* IRS** MGS 2.509 08/27/2012 n.a. 3.00 12 3.00 06/21/2012 0 - -9 MGS 3.702 02/25/2013 n.a. 2.94 14 2.95 06/22/2012 -1 - -15 MGS 3.210 05/31/2013 n.a. 2.95 279 2.97 06/21/2012 -2 - -14 MGS 3.461 07/31/2013 n.a. 3.00 107 2.94 06/22/2012 6 - -9 MGS 5.094 04/30/2014 n.a. 3.03 274 2.94 06/22/2012 9 - -3 MGS 3.434 08/15/2014 n.a. 2.98 181 2.96 06/22/2012 2 - -8 MGS 3.741 02/27/2015 n.a. 3.00 2,177 3.04 06/22/2012 -4 - -11 MGS 3.835 08/12/2015 n.a. 3.08 797 3.07 06/22/2012 1 - -2 MGS 4.720 09/30/2015 n.a. 3.07 6 3.13 06/22/2012 -6 - -4 MGS 3.197 10/15/2015 n.a. 3.07 416 3.07 06/22/2012 0 - -4 MGS 4.262 09/15/2016 n.a. 3.15 286 3.14 06/22/2012 1 - -2 MGS 3.814 02/15/2017 n.a. 3.23 316 3.26 06/21/2012 -3 - 0 MGS 4.012 09/15/2017 n.a. 3.26 177 3.28 06/22/2012 -2 - 3 MGS 3.314 10/31/2017 n.a. 3.20 277 3.19 06/22/2012 1 - -2 MGS 4.240 02/07/2018 n.a. 3.35 150 3.37 06/22/2012 -2 - 6 MGS 3.580 09/28/2018 n.a. 3.37 631 3.38 06/21/2012 -1 - 9 MGS 5.734 07/30/2019 n.a. 3.47 47 3.48 06/08/2012 -1 - 11 MGS 4.378 11/29/2019 n.a. 3.47 540 3.51 06/21/2012 -4 - 11 MGS 4.160 07/15/2021 n.a. 3.53 348 3.55 06/22/2012 -2 - 3 MGS 3.418 08/15/2022 n.a. 3.46 289 3.51 06/22/2012 -5 - -4 MGS 4.392 04/15/2026 n.a. 3.79 299 3.81 06/22/2012 -2 - 1 MGS 3.892 03/15/2027 n.a. 3.77 60 3.79 06/19/2012 -2 - -1 MGS 3.502 05/31/2027 n.a. 3.80 5 3.90 06/20/2012 -10 - 2 MGS 5.248 09/15/2028 n.a. 3.91 4 3.95 06/22/2012 -4 - 13 MGS 4.232 06/30/2031 n.a. 3.99 1 3.99 06/14/2012 0 - 21 MGS 4.127 04/15/2032 n.a. 3.98 417 4.03 06/21/2012 -5 - 20 8,111 GII 3.581 09/14/2012 n.a. 2.88 20 3.00 06/04/2012 -12 - -21 GII 3.278 03/15/2013 n.a. 3.05 10 3.05 06/14/2012 0 - -4 GII 3.288 07/15/2013 n.a. 3.05 42 3.04 06/13/2012 1 - -4 GII 3.199 09/30/2013 n.a. 3.05 15 3.02 06/07/2012 3 - -4 GII 3.909 07/31/2014 n.a. 3.23 44 3.12 06/21/2012 11 - 17 GII 3.505 09/30/2014 n.a. 3.11 162 3.11 06/21/2012 0 - 5 GII 3.902 12/30/2014 n.a. 3.27 10 3.17 06/20/2012 10 - 21 GII 3.186 07/31/2015 n.a. 3.18 140 3.19 06/21/2012 -1 - 8 GII 3.860 09/30/2015 n.a. 3.21 270 3.26 06/20/2012 -5 - 11 GII 3.820 11/15/2016 n.a. 3.27 487 3.25 06/21/2012 2 - 11 GII 3.941 06/15/2017 n.a. 3.34 15 3.36 05/24/2012 -2 - 12 GII 3.309 08/30/2017 n.a. 3.30 30 3.31 06/13/2012 -1 - 7 GII 3.872 08/30/2018 n.a. 3.48 411 3.42 06/22/2012 6 - 20 GII 3.872 08/30/2018 n.a. 3.42 70 3.42 06/22/2012 0 - 14 GII 4.295 10/31/2018 n.a. 3.48 34 3.49 06/20/2012 -1 - 20 GII 3.910 08/13/2019 n.a. 3.51 80 3.55 06/18/2012 -4 - 15 GII 3.704 09/30/2019 n.a. 3.49 2,333 3.52 06/21/2012 -3 - 13 GII 3.704 09/30/2019 n.a. 3.49 720 - - - - 13 GII 4.284 06/15/2020 n.a. 3.60 44 3.61 06/21/2012 -1 - 20 GII 4.170 04/30/2021 n.a. 3.62 60 3.63 06/21/2012 -1 - 22

The information provided in this document has been obtained or derived from sources believed to be reliable. AmBank (M) Bhd d oes not guarantee its accuracy or completeness, and does not assume any liability for any loss that may result from the reliance by any person upon any such information or opinion. Such information or opinions are subject to change without notice, are for general information only and is 4 not intended as an offer to sell or a solicitation to buy any securities, foreign exchange or other product.

Weekly Highlights

Research & Strategy

Stock Name Coupon Maturity Rating Closing Vol Previous Chg Spread Spread Trade Date Against Against % (mm/dd/yyyy) YTM (RM mil) YTM (bps) (mm/dd/yyyy) MGS* IRS** GII 4.170 04/30/2021 n.a. 3.60 308 3.63 06/22/2012 -3 - 20 GII 3.699 11/15/2022 n.a. 3.63 400 3.64 06/22/2012 -1 - 13 GII 3.899 06/15/2027 n.a. 3.86 690 3.88 06/22/2012 -2 - 8 6,395 Total MGS/GII trades 14,506

Pengurusan Air SPV Berhad 3.920 02/08/2016 GG 3.45 40 3.41 06/06/2012 4 30 29 Johor Corporation 3.480 06/14/2017 GG 3.45 5 3.45 06/20/2012 0 24 23 Pengurusan Air SPV Berhad 3.840 06/17/2016 GG 3.47 100 3.47 06/21/2012 0 32 31 Johor Corporation 3.680 06/14/2019 GG 3.66 5 3.68 06/14/2012 -2 27 30 Pengurusan Air SPV Berhad 4.150 06/17/2019 GG 3.74 3 3.77 05/29/2012 -3 35 38 Johor Corporation 3.840 06/14/2022 GG 3.83 30 3.83 06/22/2012 0 31 33 Al-'Aqar Capital Sdn Bhd 4.000 02/06/2013 AAA (BG) 3.43 10 3.49 05/09/2012 -6 47 35 ADCB Finance (Cayman) Limited 5.200 09/02/2015 AAA (BG) 3.97 40 3.95 06/21/2012 2 89 87 ADCB Finance (Cayman) Limited 5.350 11/22/2017 AAA (BG) 4.24 1 4.25 05/22/2012 -1 103 102 Antara Steel Mills Sdn Berhad 4.320 06/28/2016 AAA (FG) 3.91 10 3.95 01/17/2012 -4 76 75 TRIplc Ventures Sdn Berhad 3.000 10/10/2016 AAA (FG) 3.95 5 4.10 10/10/2011 -15 80 79 Senari Synergy Sdn Berhad 4.620 08/02/2018 AAA (FG) 4.23 30 4.19 02/13/2012 4 89 95 N.U.R Power Sdn Berhad 4.590 06/26/2023 AAA (FG) 4.47 10 - - - 95 97 TRIplc Ventures Sdn Berhad 3.000 10/10/2024 AAA (FG) 4.50 25 4.90 10/10/2011 -40 98 100 N.U.R Power Sdn Berhad 4.670 06/26/2024 AAA (FG) 4.55 10 - - - 103 105 TRIplc Ventures Sdn Berhad 3.000 10/10/2025 AAA (FG) 4.58 5 4.69 11/16/2011 -11 79 80 N.U.R Power Sdn Berhad 4.770 06/26/2025 AAA (FG) 4.65 10 - - - 86 87 N.U.R Power Sdn Berhad 4.870 06/26/2026 AAA (FG) 4.75 10 - - - 96 97 N.U.R Power Sdn Berhad 4.970 06/25/2027 AAA (FG) 4.85 10 - - - 106 107 Chemicals Derivatives Sdn. Berhad 6.000 09/29/2014 AAA (S) 3.58 5 3.76 11/23/2011 -18 58 52 Toyota Capital Sdn. Bhd. 4.000 05/28/2015 AAA (S) 3.76 20 3.75 06/13/2012 1 68 66 Genting Capital Berhad 4.420 06/08/2022 AAA (S) 4.10 52 4.10 06/22/2012 0 58 60 GB Services Berhad 5.300 11/08/2019 AAA (S) 4.12 40 4.50 06/18/2012 -38 73 76 Genting Capital Berhad 4.860 06/08/2027 AAA (S) 4.82 5 4.84 06/12/2012 -2 103 104 Petronas Chemicals Glycols Sdn Berhad 6.000 09/29/2014 AAA (S) 5.44 5 3.76 11/23/2011 168 244 238 MISC Berhad 3.480 09/25/2012 AAA 3.24 10 3.31 06/01/2012 -7 28 16 Cagamas Berhad 3.600 07/11/2013 AAA 3.24 20 3.30 04/18/2012 -6 28 16 Danga Capital Berhad 4.220 04/24/2014 AAA 3.29 50 3.33 06/22/2012 -4 29 23 Cagamas Berhad 3.500 11/09/2012 AAA 3.31 10 3.25 09/13/2011 6 35 23 Cagamas MBS Berhad 3.780 05/29/2014 AAA 3.37 10 3.49 05/31/2012 -12 37 31 Putrajaya Holdings Sdn Berhad 5.000 07/15/2013 AAA 3.38 3 3.38 05/04/2012 0 42 30 Berhad 4.380 11/14/2014 AAA 3.46 10 3.48 04/24/2012 -2 46 40 Pengurusan Air SPV Berhad 4.400 11/05/2014 AAA 3.51 10 3.51 06/20/2012 0 51 45 Syarikat Prasarana Negara Berhad 4.270 11/30/2016 AAA 3.51 10 3.50 06/22/2012 1 36 35 Danga Capital Berhad 4.490 04/22/2016 AAA 3.53 20 3.54 06/20/2012 -1 38 37 Cagamas Berhad 4.930 07/18/2016 AAA 3.54 30 3.88 08/15/2011 -34 39 38 Hyundai Capital Services Inc 4.580 08/30/2012 AAA 3.55 53 3.52 06/19/2012 3 59 47 Putrajaya Holdings Sdn Berhad 4.900 01/25/2016 AAA 3.59 10 3.59 05/04/2012 0 44 43 Projek Lebuhraya Usahasama Berhad 3.900 01/12/2017 AAA 3.61 10 3.65 05/18/2012 -4 40 39 National Bank of Abu Dhabi PJSC 4.750 06/29/2015 AAA 3.68 10 3.68 05/30/2012 0 60 58 Manjung Island Energy Berhad 3.950 11/24/2017 AAA 3.69 10 3.72 06/22/2012 -3 48 47 Projek Lebuhraya Usahasama Berhad 3.990 01/12/2018 AAA 3.70 5 3.70 06/20/2012 0 36 42 Aman Sukuk Berhad 4.230 02/28/2018 AAA 3.72 5 3.72 06/20/2012 0 38 44 Putrajaya Holdings Sdn Berhad 5.200 01/25/2018 AAA 3.72 10 3.75 05/04/2012 -3 38 44 The Export-Import Bank of Korea 4.500 07/01/2015 AAA 3.75 5 3.75 06/15/2012 0 67 65 Aman Sukuk Berhad 3.950 10/19/2018 AAA 3.77 15 3.81 04/04/2012 -4 43 49 Manjung Island Energy Berhad 4.000 11/23/2018 AAA 3.80 5 3.82 06/07/2012 -2 46 52 Aman Sukuk Berhad 4.000 04/12/2019 AAA 3.83 120 3.89 04/23/2012 -6 44 47 Manjung Island Energy Berhad 4.100 11/25/2019 AAA 3.90 5 3.90 05/18/2012 0 51 54 Berhad 4.200 12/10/2021 AAA 3.91 55 3.90 06/22/2012 1 39 41 Telekom Malaysia Berhad 4.000 05/13/2022 AAA 3.91 20 - - - 39 41 Malaysia Airports Capital Berhad 4.550 08/28/2020 AAA 3.94 4 3.94 06/21/2012 0 47 54 Projek Lebuhraya Usahasama Berhad 4.220 01/10/2020 AAA 3.95 30 3.91 06/07/2012 4 48 55 Cagamas Berhad 5.370 03/30/2021 AAA 3.96 15 3.82 01/31/2012 14 44 56 Hyundai Capital Services Inc 4.000 05/25/2015 AAA 3.97 60 4.00 05/30/2012 -3 89 87 Woori Bank 4.200 09/30/2014 AAA 4.00 10 4.00 06/22/2012 0 100 94 Aman Sukuk Berhad 4.100 10/21/2021 AAA 4.01 15 4.01 06/22/2012 0 49 51 Projek Lebuhraya Usahasama Berhad 4.310 01/12/2021 AAA 4.02 50 3.95 06/06/2012 7 50 62 Aman Sukuk Berhad 4.130 04/12/2022 AAA 4.03 5 4.05 06/22/2012 -2 51 53 Projek Lebuhraya Usahasama Berhad 4.400 01/12/2022 AAA 4.12 10 4.12 06/21/2012 0 60 62 Woori Bank 4.200 02/16/2016 AAA 4.18 2 4.19 04/19/2012 -1 103 102 CJ Capital Sdn Berhad 5.300 07/15/2019 AAA 4.19 20 4.20 02/08/2012 -1 80 83 Projek Lebuhraya Usahasama Berhad 4.480 01/12/2023 AAA 4.20 5 4.20 05/31/2012 0 68 70 Projek Lebuhraya Usahasama Berhad 4.560 01/12/2024 AAA 4.27 20 4.27 06/13/2012 0 75 77 Manjung Island Energy Berhad 4.500 11/25/2026 AAA 4.31 5 4.37 05/31/2012 -6 52 53 Projek Lebuhraya Usahasama Berhad 4.640 01/10/2025 AAA 4.37 25 4.37 06/15/2012 0 58 59 Gulf Investment Corporation G.S.C 4.900 08/03/2016 AAA 4.39 55 4.38 06/20/2012 1 124 123

The information provided in this document has been obtained or derived from sources believed to be reliable. AmBank (M) Bhd d oes not guarantee its accuracy or completeness, and does not assume any liability for any loss that may result from the reliance by any person upon any such information or opinion. Such information or opinions are subject to change without notice, are for general information only and is 5 not intended as an offer to sell or a solicitation to buy any securities, foreign exchange or other product.

Weekly Highlights

Research & Strategy

Stock Name Coupon Maturity Rating Closing Vol Previous Chg Spread Spread Trade Date Against Against % (mm/dd/yyyy) YTM (RM mil) YTM (bps) (mm/dd/yyyy) MGS* IRS** Manjung Island Energy Berhad 4.660 11/24/2028 AAA 4.49 10 4.61 12/01/2011 -12 70 71 Projek Lebuhraya Usahasama Berhad 4.800 01/12/2027 AAA 4.53 5 4.53 06/14/2012 0 74 75 Projek Lebuhraya Usahasama Berhad 4.880 01/12/2028 AAA 4.62 10 4.62 06/22/2012 0 83 84 Gulf Investment Corporation G.S.C 4.520 02/06/2023 AAA 4.99 10 5.53 09/24/2010 -54 147 149 1,373 - 4.730 05/16/2013 AA1 3.58 20 3.60 06/21/2012 -2 62 50 CIMB Group Holdings Berhad 5.050 05/30/2013 AA1 3.48 10 3.49 06/20/2012 -1 52 40 Anjung Bahasa Sdn Bhd 8.250 06/18/2013 AA1 3.59 10 3.65 12/29/2011 -6 63 51 YTL Corporation Berhad 4.850 06/25/2014 AA1 3.60 10 3.63 06/07/2012 -3 60 54 Sabah Credit Corporation 4.300 07/04/2014 AA1 3.77 5 3.77 06/21/2012 0 77 71 YTL Power Generation Sdn Bhd 4.050 07/15/2014 AA1 3.65 5 3.76 12/12/2011 -11 65 59 Anjung Bahasa Sdn Bhd 8.750 06/18/2015 AA1 3.79 25 3.89 12/29/2011 -10 71 69 Kepong Berhad 3.880 10/10/2016 AA1 3.67 2 3.68 06/08/2012 -1 52 51 Malayan Banking Berhad 3.970 12/28/2016 AA1 3.96 15 3.97 04/17/2012 -1 81 80 Public Bank Berhad 4.280 08/03/2017 AA1 4.15 0 4.15 06/22/2012 0 94 93 Sarawak Energy Berhad 4.700 06/22/2018 AA1 4.10 15 4.10 05/30/2012 0 76 81 YTL Power International Berhad 4.350 08/24/2018 AA1 4.10 40 4.10 06/20/2012 0 76 81 Sabah Credit Corporation 4.450 12/22/2021 AA1 4.27 10 4.28 05/24/2012 -1 75 77 Sarawak Energy Berhad 4.500 01/19/2022 AA1 4.35 15 4.35 06/22/2012 0 83 85 Abu Dhabi National Energy Company PJSC 4.650 03/03/2022 AA1 4.45 15 4.47 06/13/2012 -2 93 95 Sarawak Energy Berhad 4.850 01/19/2027 AA1 4.83 45 4.83 06/20/2012 0 104 105 CIMB Islamic Bank Berhad 4.200 04/21/2016 AA+ 3.93 25 3.93 06/19/2012 0 78 77 Hong Leong Bank Berhad 5.750 12/02/2014 AA2 3.90 20 3.92 06/15/2012 -2 90 84 Encorp Systembilt Sdn Bhd 3.930 05/18/2015 AA2 3.60 10 3.69 05/30/2012 -9 52 50 Hong Leong Bank Berhad 4.350 05/05/2016 AA2 4.10 30 4.10 06/21/2012 0 95 94 Public Bank Berhad 5.100 12/22/2016 AA2 4.10 14 4.10 06/21/2012 0 95 94 Hong Leong Bank Berhad 4.500 06/24/2019 AA2 4.50 35 4.50 06/22/2012 0 111 114 Encorp Systembilt Sdn Bhd 5.400 05/18/2027 AA2 4.99 15 5.25 06/18/2012 -26 120 121 Encorp Systembilt Sdn Bhd 5.450 11/18/2027 AA2 5.10 15 5.30 05/23/2012 -20 131 132 Encorp Systembilt Sdn Bhd 5.520 05/18/2028 AA2 5.08 20 5.62 05/17/2012 -54 129 130 Hong Leong Financial Group Berhad 4.050 12/02/2014 AA 3.63 10 3.65 04/25/2012 -2 63 57 Anih Berhad 5.000 11/27/2020 AA 4.30 2 4.40 05/14/2012 -10 83 90 Anih Berhad 5.700 11/27/2026 AA 4.90 16 4.92 06/06/2012 -2 111 112 Anih Berhad 5.850 11/29/2027 AA 5.02 5 5.02 06/06/2012 0 123 124 RHB Bank Berhad 5.000 11/30/2012 AA3 3.57 20 3.61 06/21/2012 -4 61 49 Malakoff Corporation Berhad 5.783 04/30/2013 AA3 3.78 50 3.81 05/29/2012 -3 82 70 Kesas Sdn Bhd 7.950 10/11/2013 AA3 3.77 5 3.78 06/13/2012 -1 81 69 Padiberas Nasional Berhad 4.550 01/20/2014 AA3 3.80 2 3.85 05/29/2012 -5 80 74 Gamuda Berhad 5.250 04/01/2015 AA3 3.77 10 3.83 05/18/2012 -6 69 67 Jimah Energy Ventures Sdn Bhd 7.900 05/12/2015 AA3 3.68 21 3.97 10/06/2011 -29 60 58 Jimah Energy Ventures Sdn Bhd 8.000 11/12/2015 AA3 3.75 10 3.75 04/26/2012 0 67 65 RHB Bank Berhad 4.300 05/05/2017 AA3 4.25 14 4.25 06/12/2012 0 104 103 Malakoff Corporation Berhad 6.382 04/30/2019 AA3 4.52 10 4.52 06/13/2012 0 113 116 CIMB Group Holdings Berhad 6.350 04/03/2020 AA3 4.75 30 4.76 06/14/2012 -1 128 135 Besraya (M) Sdn Bhd 4.720 07/28/2020 AA3 4.30 5 4.38 05/24/2012 -8 83 90 Besraya (M) Sdn Bhd 4.800 07/28/2021 AA3 4.40 5 4.40 06/20/2012 0 88 90 Jimah Energy Ventures Sdn Bhd 9.300 11/12/2021 AA3 4.46 30 4.47 06/22/2012 -1 94 96 Binariang GSM Sdn Bhd 7.100 12/28/2022 AA3 5.15 2 5.15 05/23/2012 0 163 165 Tanjung Bin Energy Issuer Berhad 5.500 03/14/2025 AA3 4.96 6 4.98 06/13/2012 -2 117 118 Malakoff Corporation Berhad 6.982 04/30/2025 AA3 5.15 12 5.19 04/05/2012 -4 136 137 Tanjung Bin Energy Issuer Berhad 5.550 09/15/2025 AA3 5.02 10 5.03 06/13/2012 -1 123 124 Tanjung Bin Energy Issuer Berhad 5.800 03/16/2028 AA3 5.30 10 5.44 05/17/2012 -14 151 152 Tanjung Bin Energy Issuer Berhad 5.950 09/14/2029 AA3 5.40 50 5.50 05/28/2012 -10 161 162 Tanjung Bin Energy Issuer Berhad 6.150 09/15/2031 AA3 5.65 10 5.78 05/24/2012 -13 165 187 WCT Berhad 2.000 03/26/2013 AA- 3.51 20 3.50 06/21/2012 1 55 43 WCT Berhad 2.500 12/27/2013 AA- 3.73 20 3.72 06/15/2012 1 77 65 Sports Toto Malaysia Sdn Berhad 5.500 06/30/2015 AA- 4.00 5 3.95 03/19/2012 5 92 90 WCT Berhad 2.500 12/28/2015 AA- 4.03 50 4.03 06/22/2012 0 95 93 Maju Expressway Sdn Berhad 7.000 06/14/2024 AA- 5.10 2 - - - 158 160 Kesturi 7.270 10/28/2027 AA- 4.94 20 5.05 02/22/2012 -11 115 116 888

RHB Capital Berhad 4.800 12/30/2015 A1 3.92 1 4.00 05/15/2012 -8 84 82 AmIslamic Bank Berhad 4.400 09/30/2016 A1 4.20 1 4.20 06/21/2012 0 105 104 Bank Muamalat Malaysia Berhad 5.150 06/15/2016 A3 4.23 58 4.25 06/07/2012 -2 108 107 60 Total PDS trades (excluding CPs) 2,321 *Spread against the nearest indicative MGS **Spread against the nearest IRS

The information provided in this document has been obtained or derived from sources believed to be reliable. AmBank (M) Bhd d oes not guarantee its accuracy or completeness, and does not assume any liability for any loss that may result from the reliance by any person upon any such information or opinion. Such information or opinions are subject to change without notice, are for general information only and is 6 not intended as an offer to sell or a solicitation to buy any securities, foreign exchange or other product.

Weekly Highlights

Research & Strategy

Rating Action

Issuer Facility Agency Ratings Ratings Rating Before After Action SI Capital Sdn Bhd RM167m Bai’ Bithaman Ajil Islamic RAM AAA (stable) AAA (stable) Reaffirmed Debt Securities Pacific & Orient Claims -paying ability RAM - A2/P1 (stable) Assigned Insurance Co Berhad Proposed RM150m Subordinated - A3 (stable) Notes Programme First Resources RM2.0b Islamic MTN Programme RAM AA2 (stable) AA2 (stable) Assigned Limited LBS Bina Group RM135m ICP/IMTN Programme MARC AAA IS (fg) / AAA IS (fg) / Reaffirmed MARC-1 IS (fg) MARC-1 IS (fg) Golden Crop RM4 42m Sukuk Al -Ijarah: Returns Series 1 RAM AAA/stable AAA/stable Reaffirmed Series 2 AAA/stable AAA/stable Reaffirmed Series 3 AA2/stable AAA/stable Upgraded Series 4 AA3/stable AA1/stable Upgraded Series 5 A1/stable AA2/stable Upgraded TTPC RM1,515m Al -Istisn a Serial Bonds RAM AA1/stable AA1/stable Reaffirmed

Local News

Date Event Period Consensus Actual Prior

None

The information provided in this document has been obtained or derived from sources believed to be reliable. AmBank (M) Bhd d oes not guarantee its accuracy or completeness, and does not assume any liability for any loss that may result from the reliance by any person upon any such information or opinion. Such information or opinions are subject to change without notice, are for general information only and is 7 not intended as an offer to sell or a solicitation to buy any securities, foreign exchange or other product.

Weekly Highlights

Research & Strategy

US Treasuries

Closing Yield Fri Mon Tue Wed Thu Fri w/w (bp) (%) 22 -Jun 25 -Jun 26 -Jun 27-Jun 28 -Jun 29 -Jun US 2y Tsy 0.31 0.30 0.31 0.31 0.30 0.30 0 US 5y Tsy 0.76 0.71 0.72 0.72 0.69 0.72 -4 US 10y Tsy 1.68 1.60 1.63 1.62 1.58 1.65 -3

UST Yields UST Spread

5.0

330 4.0 UST (30-2yr)

UST 30-yr 3.0 230 bps

Yield UST (10-2yr) 2.0 UST 10-yr 130 UST (10-5yr) 1.0 UST 5-yr UST (5-2yr) UST 2-yr 30 0.0

• US Treasuries remain well supported with yields closing on biddish tone as per last Friday’s close. As of Friday’s close, the 5- and 10-year UST yields eased 4 and 3 bps w/w to end the week lower at 0.72% and 1.65%.

The information provided in this document has been obtained or derived from sources believed to be reliable. AmBank (M) Bhd d oes not guarantee its accuracy or completeness, and does not assume any liability for any loss that may result from the reliance by any person upon any such information or opinion. Such information or opinions are subject to change without notice, are for general information only and is 8 not intended as an offer to sell or a solicitation to buy any securities, foreign exchange or other product.

Weekly Highlights

Research & Strategy

Issuance Pipeline

Issuer Est Issuance Issuance Tenure Rating Lead Arranger Date Amount RM'm RAM MARC Moody's S&P Fitch AmIslamic Bank Berhad TBD 1,200^ 15 A1 - - - - AmInvestment Bank Telekom Malaysia Berhad TBD 1,200^ 15 AAA - - - - AmInvestment Bank CIMB Investment Bank Malaysia Debt Ventures Bhd TBD 500^ 11 - - - - - n.a. Standard Chartered Saadiq KPJ Healthcare Bhd TBD 500 TBD - - - - - Affin Investment Bank Gulf Investment Corporation GSC TBD 1,825^ 5 AAA - - - - Royal Bank of Scotland Investment Bank Nu Sentral Sdn Bhd TBD 442^ 7 - - - - - RHB Investment Bank Petronas Gas Bhd TBD 1,200 TBD - - - - - n.a. SunREIT Capital Bhd TBD 1,560 20 - - - - - HSBC Bank Maybank Investment Bank RHB Investment Bank Abu Dhabi National Energy Company (TAQA) TBD 2850^ 20 AA1 - - - - Standard Chartered Saadiq Cagamas Berhad TBD TBD TBD AAA AAA - - - AmInvestment Bank RHB Investment Bank Capital Malls Trust TBD 3,000 20 - - - - - n.a. First Resources Limited TBD 2,000 10 AA2 - - - - OSK Investment Bank RHB Investment Bank United Growth Berhad TBD 2,200 30 AA2 - - - - CIMB Investment Bank HSBC Amanah Malaysia

The information provided in this document has been obtained or derived from sources believed to be reliable. AmBank (M) Bhd d oes not guarantee its accuracy or completeness, and does not assume any liability for any loss that may result from the reliance by any person upon any such information or opinion. Such information or opinions are subject to change without notice, are for general information only and is 9 not intended as an offer to sell or a solicitation to buy any securities, foreign exchange or other product.

Weekly Highlights

Research & Strategy

AmBank Group Markets

Fixed Income Sales & Distribution +603-2059 8690

Azli Bin Abdul Jamil [email protected]

Jacqueline E. Rodrigues [email protected]

Ho Su Farn [email protected]

Roger Yee [email protected]

Khairina Kamaruddin [email protected]

10

Weekly Highlights

Research & Strategy

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