1Malaysia Sukuk Under Subscribed!

Well, what do you know.

First, the 1Amanah Saham Malaysia went abegging. Now, 1Malaysia Sukuk suffers the same fate.

I wonder how will PM Najib react to this?

Let us read this release from the Ministry of Finance.

" Take up of the 1Malaysia sukuk issued by the Ministry of Finance fell short as only RM2.4 billion out of the RM3 billion sukuk was subscribed as of June 21.

Last year’s Sukuk Simpanan Rakyat, also issued by the Ministry of Finance, was fully subscribed after nine days of sale and the initial amount of RM2.5 billion was upsized to RM5 billion by using the allocation of the second series.

Both sukuks offered a five per cent return per annum for three years to investors.

The Ministry of Finance said today that Sukuk 1Malaysia 2010 amounting to RM2.4 billion was allocated to 74,781 investors who will be notified by their agent banks.

It added that beginning 22 June, investors can sell and purchase the sukuk at agent banks.

The purchase of the sukuk is based on a first-come first-served basis, with no maximum limit, subject to the availability of the sukuk sold by existing sukukholders. The minimum sale or purchase is RM100 and transactions are in multiples of RM100. An administrative cost of 0.1 per cent of the nominal purchase value is payable to the agent banks.

The selling and buying prices are calculated based on principal at par plus accrued profit.

Information on the availability of Sukuk 1Malaysia 2010 and daily prices can be obtained from www.bondinfo.bnm.gov.my or checking with agent banks.

A Re-look at Genting Berhad

Let us read what a blogger has to say about what is happening at RWS and Universal Studios Theme Park at Sentosa Island, Singapore.

" A peek at RWS-Full house!

Our attempt to visit Universal Studios was futile as tickets were sold out during weekends and on the day of our visit. Park capacity has increased to about 8,000 to 10,000 guests (from 5,000 visitors in May; full capacity: 30,000) and operating hours was extended to 7pm (from 6pm) in view of the school holidays. Hotels were seeing more than 80% occupancy, with weekends fully booked. While the casino was quiet during our visit on Monday morning, we understood that gaming operations have stabilized post-MBS opening and are seeing good visitations backed by strong loyalty from Genting Group’s Worldcard members.

A total different picture was presented during our evening peak hour visit, with table crowds averaging 3 rows deep.

Positive stance on Singapore gaming. 

Even with MBS’ opening in Apr10, we believe GENS will likely report another strong quarter backed by healthy visitations during the peak holiday season (May-Jul10). While Genting Singapore offers the best leverage into Singapore’s duopolistic market, a cheaper entry will be via Genting Berhad (Buy/ TP: RM9.00) which is trading at half of GENS’ valuation at 7.4x 2011 EV/EBITDA, along with resilient base earnings from its other operations ie Malaysian gaming, plantation and power. "

My Observation:

Genting Berhad's price has broken the RM7.00 psychological barrier and moving slowly upwards trying to sustain gains collected along the way.  Bearing no unforeseen drastic market movements, Genting Berhad should move beyond RM7.60 by this Friday 25 June 2010.