IndoGB Rebounds with 10y Headed Back to 8%
IndoGB prices rebounded in the last week of November as above 8% yield continued to grab decent buying. All benchmark bonds yield were down by an average 29bps WoW, with the biggest gain recorded by the 5y benchmark FR0053 which settled to 7.81% (-.42bps WoW) after touching a high of 8.23% in the previous week trading. November, however, was marked as a dismal month for bond market with foreign monthly sell-off reached a total of IDR19.6trn, the biggest monthly net sell this year. Market sentiments though remain cautious as the Fed prepares to raise rate hike next month which might deter investors buying interest. The US economic data continued to support rate December rate hike with recent preliminary GDP in 3Q16 grew at a faster rate of 3.2%, higher than initial reading of 2.9%. Such strong economic data would further bolster fed rate hike view on 13-14 Dec FOMC meeting.
National Coal Production Increases 18% YoY in 1H18
Indonesia’s Exports Hike 15.68% in March 2017
Indonesia Export Declined 17.58% YoY, Trade Deficit Back in November
Acset Indonusa’s Profit Growth 14.48% in 1H18
Semen Baturaja’s Sales Volume Growth 28%
On domestic front, Indonesia’s inflation in November accelerated to 3.58% YoY from 3.31% YoY in the preceding month. Rising inflation last month was mainly driven by rising prices of shallots, chilies and tomatoes. The core inflation rate, which excludes administered and volatile food prices, remains steady at 3.07%, relatively unchanged from 3.08% in October. Year to date inflation reached only 2.59%. As we have one more month in 2016, the BI thus expects the inflation would reach only 3%-3.2% in 2016. Note that low inflation is the main factor that allows Bank Indonesia (BI) to cut its policy rate six times this year.
People’s Business Credit Realization of IDR91.3Trn in November
November Consumer Confidence Index Higher
November 2017 Core Inflation Lowest Since 2004
Garuda Indonesia’s Kupang-Dili Routes Start November
Indika Energy Acquisition in Kideco Finished on November
