The Fed expects a further FFR hike of above 5% in 2023, raising fears of a recession going further and lasting for a long period. Adding to the global recession fears, BoE and ECB continued their upward trend in interest rates, rising 50 Bps to 3.50% and 2.50%, respectively. The upward trend is done as an effort to control inflation. Market participants also responded negatively towards the Fed’s statement, which says that the lower CPI and PPI indicators have not convinced the US Central Bank to counter price increases.
Corporate Bonds
BRPT: Distributing Bonus Shares. PT Barito Pacific Tbk (BRPT) will distribute bonus shares of IDR 39.24 billion by releasing 392.35 million shares with a nominal value of IDR100. The bonus shares were awarded to shareholders at a ratio of 475 to 2. Thus, each holder of 475 old shares will get two bonus shares. This result is a decision of the GMS on December 9, 2022. (Emiten News)
Domestic Issue
BPS: A Surplus of IDR5.16 Billion in Indonesia’s Trade Balance. The Statistics Indonesia (BPS) noted that the trade balance surplus in November 2022 was USD5.16 billion. This trade balance surplus decreased from USD5.67 billion in October 2022. Additionally, the export value was recorded at USD24.12 billion and the import value was recorded at USD18.96 billion. (Kontan)
Recommendation
The Technology sector benefited from the BI 7DRR increase, which was only 25 Bps, but not optimal enough for the Banking NIM. Based on a Bloomberg survey, BI 7DRR in Dec. is projected to rise moderately by 25 Bps to 5.50%; the results will be seen at the BI Governor Meeting on Thursday (22/12) next week.
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