SUN Benchmark Mixed, amid high inflation. Indonesian manufacturing is expanding again, with S&P Global Indonesia PMI Manufacturing Sept. at level 53.7 (Vs. Aug. 51.7); should have been a positive catalyst for yesterday’s trading. However, investors are watching the impact of high inflation or inflation Headline Sept. which is close to 6% YoY. On the other hand, this high inflation has made investors interested in SUN which is able to provide yields of more than 7%. Yield SUN Benchmark 5Y FR91 and Benchmark 10Y FR92 fell to 7.31% and 7.34% respectively yesterday.
KAEF: 1H22 Performance Deteriorated. PT Kimia Farma Tbk (KAEF) recorded 1H22 sales of IDR4.43 trillion or decreased by 20.39% YoY. Gross profit was recorded at IDR1.48 trillion or decreased by 20.65% YoY compared to IDR1.86 trillion in the same period last year. Meanwhile, net profit was recorded at minus IDR205.12 billion or dropped by 256% YoY. (Emiten News)
Indonesia’s Manufacturing PMI September 2022 Strongest in 8 Months. The increase in production and expansion of new domestic demand pushed up the Purchasing Manager’s Index or the Indonesian Manufacturing PMI in September 2022. The Manufacturing PMI in that month was recorded at 53.7, or up from 51.7 in last August. S&P Global survey results show that Indonesia’s manufacturing sector expansion rate during this period was the fastest in eight months and solid overall. (Liputan6.com)
Investors are watching external data. US manufacturing data, ISM Manufacturing Sept. leads to contraction, or is at the 50.9 level (Vs. Aug. 52.8); due to new orders ISM New Orders Sept. which had previously contracted to level 47.1 (Vs. Aug. 51.3). Tight monetary policy stifles manufacturing activity, pressing to the lowest level since Pre-Pandemic 2020, could force the Fed to hold back on the pace of FFR hikes. Meanwhile, a manufacturing contraction could put the US economy at risk of recession, making the UST Safe Haven instrument stronger, but with an inversion spread of UST2Y yield (4.11%) Vs. UST10Y (3.64%) is widening to near 50Bps.
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