PBS029 which matures on March 15, 2034 recorded a nominal won of up to IDR 4.3 trillion, the highest of any other series of around IDR 1.1 trillion (SPNS10082021) to IDR 2.3 trillion ( PBS004). Meanwhile, the total nominal value won by the Sukuk auction this time is IDR 12 trillion or according to the indicative target. For the record, the number of incoming bids according to our projection is around IDR 25 trillion. The Sukuk auction this time is without a Green Shoe Option, because it continues the positive trend of the auction results for Government Securities (SUN) last week. On the other hand, domestic investors continued to dominate yesterday’s auction. This is evident from the high number of incoming bids for medium and long tenor sukuk. For the record, both pension funds and insurance are interested in PBS029 because it offers a higher yield. This investor is currently optimizing returns in line with the potential for a possible increase in bond prices.
Pertamina Issues Global Bonds worth USD 1.9 Billion. Pertamina has issued global bonds worth USD 1.9 billion. Global bonds are divided into two series with different tenors. First is a 5-year bond with a bond value of USD 1 billion with a coupon of 1.4%. Second, bonds worth USD 900 million with a tenor of 10 years with a coupon of 2.3%. Meanwhile, Pertamina has chosen a short-term tenor to minimize the cost of the company’s debt and will be used as capital expenditure (capex). For the record, when a number of global oil and gas (oil and gas) companies suffered losses, Pertamina successfully booked a profit of up to USD 1 billion last year. (Kontan)
January 2021 Retail Sales Decrease Due to PPKM. Bank Indonesia (BI) estimates that retail sales performance in January 2021 will decline. This can be seen from the Real Sales Index (IPR) for January 2021 which was 186.7 or decreased by 1.8% MoM from December 2020. The decline in January 2021 was influenced by the implementation of restrictions on community activities (PPKM) in Java and Bali. This decline is also in line with the seasonal factor of decreasing public demand after the Christmas and New Year holidays, as well as the season / weather factor and natural disasters that have occurred in a number of regions. Annually, retail sales in January 2021 are estimated to still grow by minus 14.2% YoY. When compared with the growth in December 2020 which was minus 19.2% YoY. (Kontan)
Investors Pay Attention to US Stimulus Sentiment. US Treasury (UST) yields again increased to the level of 1.16%, or the highest level since March 2020. This increase made the yield spread between UST and 10-year SUN to 515 bps. Investors are also watching the US fiscal stimulus which will be disbursed in the near future. The US Democrats released a $ 1.9 trillion fiscal stimulus plan, with a $ 1,400 cash transfer program. In the short term, investors can look at FR0086, FR0087, FR0081, and FR0082.