Yesterday, the majority of Government Securities (SUN) prices were relatively strong, amid pressure on the Jakarta Composite Index (IHSG). A number of investors tend to play it safe, eyeing safe haven SUN with short to medium tenors. Meanwhile, long tenor SUN, such as FR0067, tended to be stagnant, or with a yield of 7.30%. Meanwhile, the yield for FR0082 fell to the level of 6.30%. Market players also still respond negatively to positive cases of the Covid-19 virus in Indonesia which have reached 1 million. Data from the Ministry of Health shows that there are 1,037,993 cases of Covid-19 patients. This new case was found after 54,114 people finished undergoing Covid-19 tests.
Bank Mandiri Releases USD 300 Million Green Bonds. Bank Mandiri (Persero) Tbk this year plans to issue green bonds worth USD 300 million, or the equivalent of IDR 4.23 trillion. Currently, Bank Mandiri’s liquidity conditions are quite supportive for 2021 and even up to 2022. However, taking into account the mid-term business development of 3 years and 5 years, Bank Mandiri still has a global bond ceiling of USD 2 billion and USD 1.25 billion has been realized. , leaving a ceiling of USD 750 million. Part of the ceiling will be released this year. Apart from dollars, the company also still has a ceiling of bonds through a Sustainable Public Offering (PUB) of IDR 19 trillion which will end in May 2022. Meanwhile, throughout 2020 Bank Mandiri has collected consolidated third party funds (DPK) reaching IDR 1,043.3 trillion, growing 12.24% YoY. DPK growth is also still better than the banking industry which grew 11.11% YoY. (Investor Daily)
State Spending in 2021 will be Flexible. Fiscal Policy Agency (BKF) Ministry of Finance (Kemenkeu) said the posture of state spending, especially spending by ministries and institutions (K / L) in 2021 will still be flexible. Last year, the government also exercised flexibility in handling the Covid-19 pandemic and restoring the national economy by refocusing and reallocating K / L spending. Through Law 2/2020, the government targets the 2020 state budget deficit to be 6.34% of GDP and for 2021 strives to decrease to the level of 5.7% of GDP. Furthermore, the deficit will be reduced to a position of 3% of GDP in 2023. (Investor Daily)
External Sentiment Labor Data Supported the Market Weekend. The lack of domestic sentiment has made investors respond positively to the sentiment of the United States (US). Employment data and issuers’ performance releases are positive catalysts for Wall Street’s movement. Based on Bloomberg data, the Wall Street stock market started to rise after being depressed to its lowest level since October 2020. A number of market players responded positively to the weekly jobless claims data which was lower than expected. Apart from that, the 4Q20 US economic expansion was also a positive catalyst.