Joseph Biden finally came out as the winner defeating incumbent Donald Trump, in the presidential election (pilpres) of the United States (US). Biden got 290 electoral college votes to 214 for Trump, or needs 270 votes to win the presidential election.
BMRI booked a net income of IDR14 trillion in 9M20 or 82% of our FY20E estimate. High liquidity with 84.4% LDR, but with lower CoF. We maintain BUY with IDR7,000 TP (1.7x PBV FY20E). Meanwhile, BMRI will become the parent company of Islamic SOE bank, as Bank Syariah Mandiri provides the highest contribution for assets of the merged entity.
Yesterday, the Central Bureau of Statistics (BPS) released data on Indonesia’s Gross Domestic Product (GDP) for the 3Q20 period contracted 3.49% YoY. This is the second contraction after the previous quarter, minus 5.32% YoY.
The price of Government Securities (SUN) benchmark series for short and medium tenors fell yesterday. The pressure on the bond market was triggered by concerns and political certainty after the United States (US) presidential election.
Market players have been watching, as well as wait and see ahead of the US (US) presidential election, causing the Government Securities (SBN) market to move mixed yesterday. The presidential election brings the incumbent Republican Donald Trump against Joseph Joe Biden from the Democratic Party.
The Central Statistics Agency (BPS) recorded Indonesia’s inflation rate for October 2020 at 0.07% MoM. These data simultaneously end deflation for three consecutive months, indicating that Indonesia’s domestic economy is starting to improve. This figure is in line with market expectations in the 0.075% range.
The government closed October 2020 by conducting an auction of State Sharia Securities (SBSN) or State Sukuk on Tuesday (27/10). In this auction, the government recorded a total incoming bid of IDR 20.9 trillion, or the number of incoming bids has decreased from the previous Sukuk auction of IDR 25.9 trillion.
This selective action of buying foreign investors is ahead of the US presidential election on November 3, 2020. Market players expect market volatility and global uncertainty to subside so that if the election goes well, interest in risk on investment will increase.
The price of Government Securities (SUN) closed mixed at the end of the week, amid optimism on the positive sentiment from the US government’s stimulus.
