Indonesia Banks Space Dominated Weekly Trading Flows
Indonesia corporate bonds were less active on last week trading amidst shorter trading days. We saw IDR 1,778 bn worth of trades only, lower 45% WoW while trading frequency was also down 28% WoW to 283x. We saw banks names mostly dominated trading activity in last week trading with a total of IDR 829 trades or accounted for 47% of total transaction. Top traded bonds were: Bank Capital, Tbk (BACA:IJ) 12% 2022, Bank Victoria, Tbk (BVIC:IJ) 9.5% 2018 and Eximbank 8.25% 2016 that accounted a combined trades of IDR 448 billion. Buying appetite started to appear on long term paper as the yield on Bank Capital 12% 2022 tighten 93 bps to trade back to its par value. Meanwhile, short tenured paper Bank Victoria 9.5% 2018 and Eximbank 8.25% 2016 saw widening yield by 73 – 88 bps to 10.36% and 9.2% respectively.
