Positive Trade Balance Sentiment, sustaining the market over the weekend. This is a further sentiment in trading on Friday (16/10), amid uncertainty regarding the US stimulus. Investors are interested in most of the Government Securities (SBN) at the weekend, with the 10-year tenor yield dropping nearly 6 bps to 6.76%. The steepest drop in yield was in the 10-year tenor, and the smallest drop in yield was in the long 30-year tenor, which fell 1.1 bps to 7.43%. Meanwhile, market players also responded to external sentiment, looking at the latest employment data in the United States (US). US claims for unemployment benefits rose to 898,000 a week, compared to the previous week’s 845,000. The World Health Organization (WHO) noted that the number of corona positive patients in Europe as of October 15 rose 1.81%, compared to the previous day’s position to 7,406,193 people. The addition of positive patients this day is the highest record in Europe since the virus originated in the city of Wuhan. Meanwhile, this 1.81% growth became the fastest since October 10.
Three Issuers Are Ready to Pay Off IDR 2.03 Trillion Bonds. The three issuers are Tunas Baru Lampung Tbk (TBLA). Tunas Baru Lampung has accelerated the settlement of its III short-term notes (MTN) worth IDR 239 billion. These bonds will be paid in full on October 15, 2020 plus bonus and current interest of 1% of the principal amount of MTN. Then, Bussan Auto Finance (BAF) stated its readiness to pay two bonds. The first bonds are Bonds III Series A Year 2019 worth IDR 300 billion. In addition, the company has other maturing bonds, namely Bond I Series B Year 2017 worth IDR 350 billion. The last issuer is Waskita Karya Tbk (WSKT). The company has maturing bonds, namely Series B Bonds 2015 worth IDR 1.15 trillion. These bonds will mature on October 16, 2020. These bonds are part of the Sustainable Bonds I Waskita Karya Phase II Year 2015 valued at IDR 1.5 trillion. The bonds were issued in two series, namely Series A worth IDR 350 billion and Series B worth IDR 1.15 trillion. This sustainable bond is part of the Sustainable Bonds I Waskita Karya with a total value of IDR 2 trillion. Previously, in 2014, the company had issued phase 1 of this bond worth IDR 500 billion. Waskita Karya Director of Finance Taufik Hendra Kusuma said the company has proposed relaxation of the supply chain financing (SCF) facility with an extension of 3 to 6 months. This is done to meet short-term financial obligations. (Investor Daily)
Gold prices Press the reserves of the Central bank. The position of Indonesia’s foreign exchange reserves at the end of September 2020 fell to USD 135.2 billion. The decline in foreign exchange reserves was also influenced by several components of foreign exchange reserves, one of which was monetary gold. According to data presented by the Special Data Dissemination Standard (SDDS) of Bank Indonesia (BI), the monetary gold component in Foreign Exchange Reserves in September 2020 was recorded at USD 4.79 billion, down 3.81% from the previous position of USD 4.98 billion. The decline in the component of monetary gold was due more to the decline in gold prices that occurred during the month under review. As we know, the price of gold in September was recorded to decrease by 2.37% MoM, although it was still 27.23% YoY higher than September 2019. However, the decline in this component did not have much effect. This is because the gold reserves at the central bank have so far not been much or have never been used as a monetary instrument. (Kontan)
Market players have begun to pay close attention to domestic sentiment, namely developments in the omnibus law, after last week’s rejection. The rupiah exchange rate closed slightly lower by 0.05% to IDR 14,698 / USD on the spot market. The same thing also happened to BI’s middle rate, which fell 0.04% to IDR 14,766 / USD. Meanwhile, external sentiment comes from the uncertainty of US political conditions ahead of the presidential election. The movement of the US dollar exchange rate was still influenced by US stimulus talks. For the record, Republicans are waiting for a reply from the Democrats on the latest US stimulus proposal. Investors can again look at the FR0086, FR0087, FR0080, FR0083, and FR0076, which are the series that will be offered at the SUN auction on Tuesday.