Author Topic: Strong demand seen for Danainfra’s sukuk  (Read 7507 times)

Offline Ļaughing Ģor

  • Global Moderator
  • Marquess
  • *****
  • Posts: 17,755
    • Investlah - Malaysia's Biggest Investment Forum
Strong demand seen for Danainfra’s sukuk
« on: January 12, 2013, 01:53:07 AM »
PETALING JAYA: Danainfra Nasional Bhd's exchange traded sukuk, the latest asset class that has been just launched, is expected to attract strong demand from investors who want exposure to infrastructure-based bonds.
 
According to analysts, this is because it is the single asset class in its category that allowed retail investors to diversify their investment portfolio from the usual opportunities available on the market.
 
Danainfra's maiden issuance, which aims to raise funds for the construction of the mass rapid transit (MRT) project, will have a nominal value of RM300mil.
 
Danainfra's retail sukuk was created as part of its efforts to broaden its investor base by allowing participation of retail investors to fund the MRT project, its factsheet stated.
 
The date of issuance and listing on Bursa is targeted for Feb 8, opening offer date was yesterday with its closing date on Jan 18.
 
The first Danainfra retail sukuk that will have a tenure of 10 years is guaranteed by the Government and is a syariah-compliant investment with CIMB Islamic Bank Bhd as the syariah adviser.
 
According to Danainfra, yields are about 3.7% although this figure is not yet finalised pending the market appetite for the retail sukuk.
 
The minimum investment board lot size for exchange traded bonds and sukuk (ETBS) is 10 units per lot size with a principal price of RM100 per unit. Thus each board lot will cost RM1,000 excluding transaction costs, a factsheet by Bursa Malaysia stated.
 
It added that profit payment of Danainfra's retail sukuk, which will be paid semi-annually, is also tax exempted while the profit rate per annum would be fixed throughout its tenure.
 
The Government has also approved the utilisation of investors' Employees Provident Fund account 1 to allow direct investments to include ETBS instruments or government and government-guaranteed bonds and sukuk through authorised agents.
 
Bond Pricing Agency Malaysia chief executive officer Meor Amri Meor Ayob told StarBiz that Danainfra's issuance was a “positive step in the right direction” for the country as it offered a new investment asset class for retail investors.
 
RAM Holdings group chief economist Dr Yeah Kim Leng also said he believed there was strong appetite for fixed-income instruments such as Danainfra's being the latest.
 
“They will boost investors' confidence in these secure investments. Infrastructure-related bonds and sukuk funding make up close to 30%-40% of issuances today,” Yeah added.
 
According to Malaysian Rating Corp Bhd's chief executive officer Razlan Mohamed, there will likely be a “strong demand” for this retail issuance because of the size of the offering which will be easily absorbed by retail investors.
 
The four lead arrangers for Danainfra retail sukuk's first tranche are AmBank Group Bhd, CIMB Group, Malayan Banking Bhd and RHB Capital Bhd.
Can someone to give me a Loan and then leave me Alone?

Offline Ļaughing Ģor

  • Global Moderator
  • Marquess
  • *****
  • Posts: 17,755
    • Investlah - Malaysia's Biggest Investment Forum
Re: Strong demand seen for Danainfra’s sukuk
« Reply #1 on: January 12, 2013, 02:42:18 PM »
3.7% only ............... now I know why cannot blame people for jumping into Genneva.
Can someone to give me a Loan and then leave me Alone?

Offline kittima

  • Viscount
  • ******
  • Posts: 7,163
Re: Strong demand seen for Danainfra’s sukuk
« Reply #2 on: January 12, 2013, 02:51:45 PM »
3.7% only ............... now I know why cannot blame people for jumping into Genneva.

Bond actually have their own beauty when it can be traded floating on market, let say they fix the interest rate at 3.7% with initial price of RM1.00, when the market interest is going up, the price of bond will go down (as theoretically), as the 3.7% is fix, and you buy the price going down at RM0.90, hence your return rate is actually become 4.1%, where else if market is too volatility, and people chasing for safe haven in bond, the price go up to RM1.10, the effective interest will become 3.4%.

So since I only like those safe haven to give me at least 5% interest, I need to wait this Dana infra to drop until RM0.74 than only i consider entering.

Offline Ļaughing Ģor

  • Global Moderator
  • Marquess
  • *****
  • Posts: 17,755
    • Investlah - Malaysia's Biggest Investment Forum
Re: Strong demand seen for Danainfra’s sukuk
« Reply #3 on: January 12, 2013, 02:59:09 PM »
Bond actually have their own beauty when it can be traded floating on market, let say they fix the interest rate at 3.7% with initial price of RM1.00, when the market interest is going up, the price of bond will go down (as theoretically), as the 3.7% is fix, and you buy the price going down at RM0.90, hence your return rate is actually become 4.1%, where else if market is too volatility, and people chasing for safe haven in bond, the price go up to RM1.10, the effective interest will become 3.4%.

So since I only like those safe haven to give me at least 5% interest, I need to wait this Dana infra to drop until RM0.74 than only i consider entering.

BNM may revise interest rates upwards by year-end

By John Gilbert
 
KUALA LUMPUR: Bank Negara Malaysia (BNM) may raise interest rates towards the end of the year on expected stronger economic growth, Standard Chartered Global Research head of research for Southeast Asia, Edward Lee, said.
 
Lee said the central bank may tighten rates by up to 25 basis points from the current 3% as the economy improves.
 
“Given how the economy has grown, possibly we should expect some interest rate hikes in the late 2013,” he told reporters at the Standard Chartered Global Research Briefing 2013 here yesterday.
 
Economists expect Malaysia’s gross domestic product (GDP) to grow between 5.3% and 5.5% for this year, based on global sentiments and continuing strong domestic demand and consumption.
 
According to RAM Holdings Bhd group chief economist Yeah Kim Leng, declining global demand for Malaysian exports has been somewhat offset by the 20% growth of domestic demand in the first three quarters of last year.
 
BNM maintained its overnight policy rate at 3% at its last monetary policy meeting in November, while data and surveys of business conditions suggest that consumption and investment remain resilient.
 
Touching on private investments, Lee said Malaysia can register growth this year despite the high base of private investment into Malaysia last year.
 
“Both private and public investment are growing nicely, but a slightly larger proportion of total investments is coming from private investments,” he said.
 
Focusing on the construction industry as one of the contributing factors in attracting private investments, Lee said the industry has a ‘good multiplier effect’ and well-linked across the industry.
 
“Services sector that are linked with the construction industry, for example real estate and financial services, will continue to benefit,” he said.
 
As for manufacturing and trade-related activities, the country is still relying on external conditions and are likely to continue to be soft due to uncertain economic growth in Europe and the US.
Can someone to give me a Loan and then leave me Alone?

Offline MY Investor

  • Civilian
  • *
  • Posts: 15
    • Invest Made Easy (Malaysian Only)
Re: Strong demand seen for Danainfra’s sukuk
« Reply #4 on: January 12, 2013, 05:58:24 PM »
Bond actually have their own beauty when it can be traded floating on market, let say they fix the interest rate at 3.7% with initial price of RM1.00, when the market interest is going up, the price of bond will go down (as theoretically), as the 3.7% is fix, and you buy the price going down at RM0.90, hence your return rate is actually become 4.1%, where else if market is too volatility, and people chasing for safe haven in bond, the price go up to RM1.10, the effective interest will become 3.4%.

So since I only like those safe haven to give me at least 5% interest, I need to wait this Dana infra to drop until RM0.74 than only i consider entering.

I'm wondering on what basis will the secondary price drop to 90cents or even to 74cents? surely there must be some problem with the mrt development which could result in loss of confidence. furthermore how volatile would the price be on the bursa?

one more thing is that if the price of the sukuk drop, it would also mean that the interest rate for FD have gone up, am i right?

i guess its a balance outcome in the end for investors waiting for the price of the sukuk to drop before buying in.  :)
Want to know more about Long Term Investing and the Power of Compounding Interest? Then find me on Facebook at "Invest Made Easy, Malaysian Only" or drop me an email at sickfreak03@gmail.com

P.s : I am not a mutual trust agent

Offline ikan besar

  • Duke
  • *********
  • Posts: 39,568
  • nia........mah.....when only the mkt going up
Re: Strong demand seen for Danainfra’s sukuk
« Reply #5 on: January 12, 2013, 06:16:31 PM »
this morning when having breakfast at a 5 star hotel , i happen to meet the chairman
of this Diana infra sukuk Tuan Temenggong Besar Ibrahim sheik Ali Khan, without wasting anymore
time i ask him how is the ipo going to fair, he said should be very very very good
with the country growth of 5% and more, this sukuk should perform pretty well
then i ask him but why people mentioned abt the 3.7% return only , well he said
this is jes a safety precaution , we are not afraid of Yat Man but if Man Yat
oh ...ini macaim lah , i told him
so attackkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk kkkkkkkkkkkkkkkkkkk
I heard dr kimmy lost alot of monies

Offline Ļaughing Ģor

  • Global Moderator
  • Marquess
  • *****
  • Posts: 17,755
    • Investlah - Malaysia's Biggest Investment Forum
Re: Strong demand seen for Danainfra’s sukuk
« Reply #6 on: January 12, 2013, 10:17:41 PM »
Bond actually have their own beauty when it can be traded floating on market, let say they fix the interest rate at 3.7% with initial price of RM1.00, when the market interest is going up, the price of bond will go down (as theoretically), as the 3.7% is fix, and you buy the price going down at RM0.90, hence your return rate is actually become 4.1%, where else if market is too volatility, and people chasing for safe haven in bond, the price go up to RM1.10, the effective interest will become 3.4%.

So since I only like those safe haven to give me at least 5% interest, I need to wait this Dana infra to drop until RM0.74 than only i consider entering.

If Bank Negara cannot lower interest rates every year, but landlord can increase rental every year, is it better to buy REITS?
Can someone to give me a Loan and then leave me Alone?

Offline ikan besar

  • Duke
  • *********
  • Posts: 39,568
  • nia........mah.....when only the mkt going up
Re: Strong demand seen for Danainfra’s sukuk
« Reply #7 on: January 13, 2013, 01:12:32 PM »
this morning while makan roti canai , this
chairman Tuan Temenggong Besar Ibrahim sheik Ali Khan
jes sit next to my table, so i said halo to him
he ask me whether i apply for the ipo or not
I told him , jes bot some , he said hai yoh why so little
must be heong heong and not seong seong
he told me this Danainfra sukuk is one of the dream stock
of every fund manager
wo what are u waiting for
hamtam and attackkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk kkkkkkkkkkkkkkkkkkkkk
I heard dr kimmy lost alot of monies

Offline SharkFin

  • Civilian
  • *
  • Posts: 80
Re: Strong demand seen for Danainfra’s sukuk
« Reply #8 on: February 07, 2013, 06:14:07 PM »
tomorrow is the listing of sukuk..... want to support or not ???? all gormen punya stock tak bolih pakai 1 !!!!!

Offline prc4wifeife

  • Companion of Honour
  • ***
  • Posts: 745
Re: Strong demand seen for Danainfra’s sukuk
« Reply #9 on: February 07, 2013, 09:03:52 PM »
tomorrow is the listing of sukuk..... want to support or not ???? all gormen punya stock tak bolih pakai 1 !!!!!

Sure good one....see wat ikan besar say...

Also this one Ah jib gor punya share lai wor!!!

Online sj7953

  • Knight
  • **
  • Posts: 492
Re: Strong demand seen for Danainfra’s sukuk
« Reply #10 on: February 08, 2013, 04:26:19 PM »
wow.....up 1.31 now..... :D :D :D
My Portfolio:

 Dlady 35.20, 43.16
 Aeoncr 10.68, 14.88
 Harta 4.61,
 Favco 1.65,

 updated 22 august 2013

Online DR KIM

  • Prince
  • **********
  • Posts: 43,888
Re: Strong demand seen for Danainfra’s sukuk >>IPO ATTACKKKKKKKKKKKKKKK
« Reply #11 on: February 08, 2013, 04:28:37 PM »
wow.....up 1.31 now..... :D :D :D


huhhhh this  IPO   :cash: :cash: :cash:   :) :)

Online sj7953

  • Knight
  • **
  • Posts: 492
Re: Strong demand seen for Danainfra’s sukuk >>IPO ATTACKKKKKKKKKKKKKKK
« Reply #12 on: February 08, 2013, 04:46:41 PM »

huhhhh this  IPO   :cash: :cash: :cash:   :) :)


what so good with this sukuk????    ::) :think: :wonder:
My Portfolio:

 Dlady 35.20, 43.16
 Aeoncr 10.68, 14.88
 Harta 4.61,
 Favco 1.65,

 updated 22 august 2013