High Yield Boosts PBS028 Interest
Sukuk auction results on Tuesday showed the highest bid in the PBS028 series. Sukuk with maturity date of October 15, 2046, posted a request of up to IDR 7.07 trillion.
Daily Report | Approaching the Start of Vaccination Program
The room for JCI to strengthen appears to be increasingly limited after strengthening for 4 consecutive days. Investors are watching the fluctuation of the rupiah exchange rate and the start of the Covid-19 vaccination program. Today, JCI is expected to move with a tendency to weaken in the range 6,250 – 6,435.
Risk Appetite Rise and Rupiah Depreciation Press SUN
All benchmark government bonds (SUN) prices closed under pressure in line with the rising risk appetite of market players, amid optimism for the development of the Covid-19 vaccine.
Daily Report | Boosted by Sentiments of Vaccine Distribution Permits
Yesterday’s significant rise succeeded in sending the JCI past the pre Covid-19 pandemic. The market seems to appreciate the issuance of an emergency distribution permit for the Sinovac vaccine which will soon be distributed with an efficacy rate of 65%. Today, the JCI is expected to be in the range 6,315-6,560.
FR0088 Yield Inversion
Government Securities (SUN) series FR0088 posted a yield of 6.12% or the same level compared to FR0087 (10-year) at the close of last week.
Weekly Report | 11 January 2021
JCI movement will be influenced by Covid-19 vaccination program which is scheduled to start on January 13, 2021. Meanwhile, investors will also pay close attention to the release of Trade Balance data for December 2020. Technically, JCI is in overbought area, and hence relatively prone to profit taking.
Daily Report | JCI in Overbought Area
Improvements in economic data and the Covid-19 vaccination plan were also able to increase the JCI by 4.7% over the past week. However, the stochastic indicator is already in the overbought area, causing the stock market to be vulnerable for profit taking this week. Today, JCI movement is expected to be in the range of 6,158-6,350.
UST Yield Increase, SUN Prices Are Relatively Pressured
Currently, the yield spread for Indonesian Government Securities (SUN) with 10-year tenor and US Treasury (UST) with the same tenor is in the range of 485 bps. These spreads are narrower than last year.
Daily Report | Wall Street Record High After Endorsement of Election Results
The Indonesian market continued the bullish phase following the gains in the majority of global markets. Sentiments that still influence it, among others, are around the Covid-19 vaccination plan and the release of data on foreign exchange reserves which is expected to continue to increase. Today JCI is expected to move in a range 6,105 – 6,166.
