The Government will issue retail bonds next year as much as 4 times, consisting of 2 times the retail bonds (ORI) and 2 times the Islamic bonds or sukuk retail (Sukri). This plan is one of the strategies issuance of Government Securities (SBN) next year. For the record, retail sukri series 7 (SR007) issued by the government in late February with an indicative target of Rp 20 trillion, rationing posted a turnover of up to Rp 21.97 trillion.
While ORI012 September issue worth Rp 27.4 trillion, or exceeded the indicative target of Rp 20 trillion. Government assess, with high holdings of government bonds by the Indonesian people themselves, will reduce the volatility of the bond market. The volatility of the bond market next year will also be reduced by the deepening of the market conducted by Bank Indonesia (BI), and the Financial Services Authority (FSA). As for attracting foreign investors, the government chose to issue global bonds, euro bonds, and samurai bond.
Foreign Net Buy Throughout October Rp 5.39 trillion.
Starting the fourth quarter, foreign investors back into the market of government securities (GS). Based on data from the Directorate General of Finance and Risk Management (DJPPR) notes, foreign net buy round in October 2015 reached Rp 5.39 trillion. This value is rising, having previously posted a net foreign outflow of Rp 14.1 trillion in the third quarter.
Capital inflow of foreign investors in line with the appreciation of rupiah 6.98% month on month (mom) from Rp 14 653 per US dollar to Rp 13 684 per US dollar at the end of October 2015. The banking sector also increases holdings in government securities, rose to Rp 11.35 trillion; then insurance Rp 3.56 trillion; and retail investors increased to Rp 23.68 trillion.
The dominance of short tenor bonds 72% Transaction Weekend.
Activity in the secondary market is still quiet yesterday with the volume of transactions recorded only Rp 448 billion with trading frequency 64 times out of 27 series transacted. Investors were active in short-term bonds (<1 year) who dominated the weekend trade value volume reached 323 billion or 72% of total transactions. Bonds and bond finance companies top rating SOE maturities of 1 year to be the target of investors yesterday.
Astra Sedaya Yield 9.50% in 2016 down 15 bps to a level of 9.29% to the value of the volume of Rp 24 billion. While the price of Jasa Marga, 8.70% in 2016 also increased the yield fell by 47 bps to 8.75% by volume position of Rp 80 billion. Bonds with the highest volume recorded yesterday by MFIN 10.50% in 2016 with a transaction volume of up to Rp120 billion and yield increased 33 bps to 9.52%.
PT Sumarecon Agung Tbk issuing Bonds.
PT Sumarecon Agung Tbk issuing bonds II with a target total funds raised amounted to Rp 3 trillion by the end of this year. In PUB II, the Company will issue bonds first stage at a maximum of Rp 500 billion a tenor of 5 years with offering period will be made on November 9 to 24 and allotment on 14 December and registered on December 17, 2015. These bonds have earned an A + rating from PT Rating Agency Indonesia or Valuation effects.
Foreign Exchange Reserves Down $ 1 billion in October.
Bank Indonesia (BI) reported that Indonesia's foreign exchange reserves fell to USD 1 billion to USD 100.7 billion as of end October 2015 from the end of September 2015 in the position of USD 101.7 billion. This decline is relatively smaller than the decline in international reserves in September 2015 were down USD 3.6 billion to USD 101.7 billion. Foreign exchange reserves at the end of October 2015 was enough to cover 7.1 months of imports or 6.6 months of imports and government foreign debt payments.
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