Investors Still Respond Positively to Biden Effect. Biden’s victory has the opportunity to make foreign funds back into Indonesia, especially the bond market. Although the rupiah was overshadowed by a decrease in foreign exchange reserves, market players had anticipated this. The yield on 10-year Government Securities (SUN) fell 12.2 bps to 6.26% at the start of the week. Biden’s victory over Trump has already been projected by a number of polls. Investors responded positively to expectations that Biden’s policies would be better, or that there would be no more heated trade wars between the US and various countries, especially China, as well as the Fed’s policy intervention. Nevertheless, Trump’s side refused to budge and claimed that the vote count was far from over. Trump’s campaign team has filed lawsuits in a number of states, including Pennsylvania and Michigan.
J Resources Will Issue IDR 500 Billion Bonds. J Resources Asia Pasifik Tbk (PSAB) will issue sustainable bonds I phase VI in 2020 worth IDR 500 billion. These bonds are part of the ongoing bonds I worth a total of IDR 3 trillion. J Resources previously issued sustainable bonds phase I in 2019 worth IDR 256 billion. Then, the company issued sustainable bonds I phase II of 2019 amounting to IDR 500 billion. Furthermore, in 2020, J Resources will issue sustainable bonds I phase III worth IDR 569.56 billion. In the same year, the company issued sustainable bonds I phase IV amounting to IDR 225 billion and issued sustainable bonds I phase V worth IDR 650 billion. Meanwhile, the sustainable bonds phase I, phase VI, which will be guaranteed in full capacity, will reach IDR 414.75 billion. The bonds are divided into two series, namely series A worth IDR 251.66 billion with a 370-day tenor and a 9.25% coupon. Meanwhile, series B amounted to IDR 163.09 billion with a coupon of 10.25% and a 3-year tenor. (Investor Daily)
Consumers ‘Perceptions of Economic Conditions Weakened. Consumers’ perceptions of current economic conditions appeared to weaken in October 2020. This is reflected in the current Economic Condition Index (IKE) for that month which was 51.5 or down from 54.1 in September 2020. The current decline in the CECI is due to a decline in all components of the composing index, with the deepest decline occurring in the Current Income Index. Current Income Index was recorded at 52.9 or down 4.7 points from September 2020. The decline in consumer confidence in current income was due to the lack of recovery in consumer income. Both routine (salary or honorarium) and business turnover, along with the implementation of the transitional Large-Scale Social Restriction (PSBB) policy in various cities. (Kontan)
Biden Effect Moves the Market. The victory of US presidential candidate Biden still has a positive impact on the rupiah, it is believed that it continues to this day. The rupiah exchange rate is projected to have the opportunity to strengthen below the psychological level of IDR 14,000 / USD. Market players have responded positively to the plan of Biden and his team, which are proposing an aid package to deal with the Covid-19 pandemic. Early in the week, the rupiah strengthened 1.02% to a level of IDR 14,065 / USD. Meanwhile, BI’s middle rate strengthened 1.04% to IDR 14,172 / USD. In the short term, investors can look back at the FR0082, FR0080, and FR0087.