Petrol prices fell 2% MoM, putting pressure on US inflation. On a monthly basis, US Inflation Headline in Nov. was only 0.1% MoM (Vs. Oct. 0.4% MoM) or recorded an annual inflation rate of 7.2% YoY (Vs. Oct. 7.7% YoY). The decreasing inflation is raising expectations of an increase in the Dec. FFR for only +50 Bps (Vs. +75 Bps) to the Upper Bound level of 4.50%, as well as suppressing the yield of UST2Y and UST10Y down to the level 4.22% and 3.50%, respectively.
Corporate Bonds
PTPP: Still Aim Government Projects Next Year. PT PP (Persero) Tbk (PTPP) is still aiming for the acquisition of new contracts from government and State Owned Enterprise (BUMN) projects in 2023. The Company stated that the new contract’s target in 2023 is still in the finalization stage and internal preparation. However, in terms of the targets to be achieved, the Company is still aiming for projects from the State Budget, BUMN’s Capex, and several private companies. Additionally, one of the strategies implemented next year is to remain selective in finding new contracts. (Kontan)
Domestic Issue
IKN Development Budget Reaches IDR20 Trillion. The development budget of Nusantara Capital City (IKN) is still following what has been agreed, or around IDR20 trillion in 2023, with a total of IDR47 trillion. Previously, the Minister of Public Works and Public Housing (PUPR) said that the infrastructure development auction implemented in the IKN’s Central Government Core Area (KIPP), especially in the 1A zone, has 25 activities worth IDR15.08 trillion. (Kontan)
Recommendation
Crude oil rose by 3%, both Brent and WTI, along with the hope of the US recession not falling deeper or happening within the long term. Investors are returned to be Risk-On for their risk assets, causing Wall Street to increase as US Inflation Headline sloped again. Today’s SUN market movement, amid investors’ focus on waiting for the Fed’s decision in response to the US inflation.
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