DJPPR recorded incoming SUN auction requests worth IDR 61.16 trillion, and successfully won IDR 22 trillion. Investors are still quite optimistic, as seen from incoming requests exceeding the indicative target, or record oversubscribed as much as 3x.
FR0081 is flat ahead of the 3Q20 premiere SUN auction, posting prices and yields at 100.75 and 6.31% respectively, based on Bloomberg data.
A number of market participants project that Bank Indonesia (BI) will maintain the benchmark interest rate at the level of 4.25% at the Board of Governors’ Meeting this week. Market participants also responded positively to the government, which has poured a number of monetary and fiscal policy stimulus in an effort to restore the economy.
The 5-year benchmark SUN FR0081 is trading in a price range of 100.00-100.46 this week, based on Bloomberg data. Volatility in medium and long tenors, makes market participants interested in short tenures FR0081.
SUN market responded positively to the improvement in a number of economic data. The June 2020 Consumer Confidence Index (IKK) rose to 83.8 from the previous month’s 77.8.
Based on data from the Directorate General of Financing and Risk Management (DJPPR), incoming bids PBS028 (new issuance) yields up to 8.37% or higher than our previous projection between 8.15% -8 , 20%. These projections use the benchmark yields of PBS005 (43-years) and PBS015 (47-years), which are at the level of 8.05% and 8.36%, respectively.
Based on DJPPR data, foreign ownership in SBN decreased by IDR 4.6 trillion to IDR 935.8 trillion on Wednesday (07/01). The ownership decreased from the position Monday (06/29) IDR 940.4 trillion, after recording an increase in ownership of IDR 8.6 trillion since the end of May 2020.
Foreign investors net sell worth IDR 4 trillion or during the period 26 June to 1 July. The movement of SUN on the weekend was also amid uncertainty in global political conditions, making investors avoid medium and long tenors. The ratification of Hong Kong’s security law by the Chinese government has the potential to increase regional tensions.
BBCA’s Management projected around 20% to 25% of all debtors will propose loan restructuring in 2020. Until the end of May 2020, BBCA has received IDR92.09 trillion in loan restructure requests.
