Manufacturing Data Support SUN Market
INDOBeX Government Total Return is relatively flat or edged up 0.02% to 278.64. A number of investors responded positively to the rise in Indonesia’s manufacturing index from May 28.6 to June 39.1.
Macroeconomic Report | SUN Incoming Bids Down and Inflation Trend Changes
The government offered 7 series of Government Bonds (SUN) at an auction held on 30 June 2020. Of the 7 series offered, FR0081 with 5-year tenure is still the preferred SUN series with an incoming bid of IDR27.9 trillion.
Significant Recovery Pushes ICBI to the Highest Level
The bond market has responded positively to the return of investors to take a position, in line with the projected global economic recovery since activity in a number of countries. This investor optimism was also supported by the appreciation of the rupiah from around IDR 16,500/USD to the level of IDR 14,000/USD.
Yield Declining Trend Press 2Q20 Last SUN Auction
The government recorded a bid to enter the SUN auction Tuesday (6/30) worth IDR 72.03 trillion. This figure is 15.1% lower than the previous auction of IDR 84.82 trillion.
Inflation Sentiment Support Govt. Bond Market
All Govt. bond (SUN) reference series were limited earlier this week, with yield FR0082 flat at 7.19%. SUN market movement yesterday, amid low inflation trends.
BBRI – Flat 1Q20 Perfomance
BBRI recorded a net income of IDR 8.17 Trillion in 1Q20, or relatively flat compared to 1Q19 net profit of IDR 8.19 Trillion. This consolidated profit was driven by market condition, namely its investments in subsidiaries such as BRILife and BRI Agro. As for Bank-Only, BBRI booked a net profit of IDR 8.30 Trillion or up 3.25% YoY. This achievement was supported by higher net interest income which grew 7.11% YoY to IDR 20.02 Trillion.
Capital Inflow IDR 2,7 Trillion
Foreign investors recorded a net purchase of IDR 2.7 trillion, during the period 19-25 June 2020.
IMF Cuts Economic Projections
The International Monetary Fund (IMF) projects that the pace of the world economy in 2020 will be minus 4.9%. This figure is lower than the previous prediction in April of minus 3%, as the global economic pace is leading to an economic crisis and fears of a second wave corona virus outbreak.
Macroeconomic Report | Low Inflation Cut BI 7-DRRR by 25Bps
Bank Indonesia (BI) trimmed the benchmark interest rate BI 7-Days Reverse Repo Rate (BI 7-DRRR) of June 2020 by 25 bps to 4.25%. Before the cut, the BI 7-DRRR was kept at level 4.50%.
