BI 7-DRRR Holds SUN Market
The Government Securities (SUN) market closed mixed, with benchmark SUN yields FR0087 and FR0088 at 6.30% respectively, based on Bloomberg data.
Daily Report | 20 Aug 2021
In line with the majority of regional exchanges, JCI also declined, triggered by the discourse of the Fed’s tapering. All sectoral indexes closed in the red; while foreign investors still recorded a net buy of IDR 310 billion. Towards the end of the week, JCI is expected to remain volatile at a lower range of 5,950 – 6,160.
Mixed SUN Market, Responding to the Basic Macro Assumptions of 2022
The basic assumption of economic growth in 2022, which does not exceed 5.5%, has made market participants return to interest in long tenors that offer high yields.
Daily Report | 19 Aug 2021
JCI managed to rebound, led by the Financial sector with a gain of 1.85%. Market participants await the outcome of the Bank Indonesia Board of Governors’ Meeting (RDG), which is projected to keep the BI-7DRRR benchmark interest rate at 3.5%.
Macro Fundamental Assumptions 2022
Speech on Financial Notes and Clarity of PPKM. The movement of the Government Securities (SUN) market earlier this week, amid waiting for clarity on the imposition of Level 4 Community Activity Restrictions (PPKM) Investors also paid close attention to Joko Widodo’s speech which underlined the crisis to the pandemic.
Daily Report | 18 Aug 2021
Domestically, the implementation of PPKM level 4 in Java-Bali has been extended until August 23, 2021, although it is accompanied by some easing in shopping centers and offices. The government has also announced the basic macro assumptions for 2022, with economic growth targeted at between 5% – 5.5%. Technically, JCI movement today has the potential to rebound in the range of 6,070 – 6,220.
More Aggressive Investors, Reduce Bond Portion
The majority of government bonds (SUN) prices were depressed for a week, causing some long tenors to record higher yields.
Weekly Report | 16 Aug 2021
JCI movement for this week will potentially be influenced by the congested schedule of economic data releases. Firstly, the Trade Balance for July period is projected to still be in a surplus of USD 2.3 billion. For the record, Indonesia has booked trade balance surplus for the last 14 months. Secondly, investors will pay close attention to the decision of the Board of Governors’ Meeting (RDG) of Bank Indonesia which will be announced on August 19, 2021. Finally, the Current Account position for the second quarter of 2021 is predicted to remain in a deficit, with economist consensus at USD 732 million.
Daily Report | 16 Aug 2021
Throughout last week, JCI declined by 1.03%; in the midst of a net sell off by foreign investors worth IDR 717 billion. Market participants will pay close attention to Indonesia’s economic projections in President Joko Widodo’s 2022 Financial Note speech scheduled for today. Technically, JCI has the opportunity to strengthen at the beginning of this week with a projected range of movement at 6,070 – 6,220.
