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The re-election of Malaysia's ruling party is positive for the Islamic bond market which will continue to benefit from transparent policy, but issuance is unlikely to kick off again for a week or two.
The Islamic bond market will benefit from the re-election of Malaysia's incumbent government and issuance is likely to restart, but companies are likely to wait for a couple of weeks until the political debate subsides.
Sukuk issuance has stalled in Malaysia for the past two months as both issuers and investors waited for the result of the general election. On May 5 the ruling Barisan Nasional party, led by prime minister Najib Razak, won a majority of seats. The news has been received positively by the bond market.
"In general everyone was extremely cautious before the election. Issuers were quite prudent and wanted to wait for the result of the elections before they started issuing bonds, even for working capital," said Nor Masliza Sulaiman, regional head of DCM and syndicate at CIMB Bank.
Others agree: "The biggest impact was when...