Indonesia Multifinance Revives Primary Market Activity; TAFS’ Coupon Rate Set Higher 25 Bps
In the next two weeks trading, Indonesia primary activity will be supported by some multifinance new bonds issuance. There are three companies preparing to release bond in the next two weeks; Toyota Astra Finance (TAFS), Indomobil Finance (IMFI) and BII finance. TAFS has closed its book building period on Friday last week while the book.
Read More...Indonesian Retailers, 3Q15 Results Preview
Considering the weak purchasing power of Indonesian consumers, we believe retailers like Matahari Department Store and Matahari Putra Prima which have low leverage (net cash position), minimum imports, and targeting the resilient middle income will post decent results in 3Q15 compared to its peers. We also expect weak performance from ACE Hardware (due to its.
Read More...Media and Broadband, Bittersweet Performance
We expect Surya Citra and Link Net to report a good performance in 3Q15 Surya Citra will be buoyed by normalising Unilever contribution, higher audience share and margin improvement, while Link Net will be supported by higher number of new subscribers. We are cautious on Media Nusantara’s 3Q15 performance on a potential slip in audience.
Read More...Indonesia Media, Investment Paid Off Handsomely
Trans Corp, according to Nielsen data, was the top gainer in all time audience shares in September (+4% MoM to 17.1%) due to its Trans7 station, which managed to improve the group’s performance. Surya Citra’s audience share rose 2% MoM to 29.2%, supported by Indosiar’s new TV and sports shows like Bintang Pantura, Piala Presiden.
Read More...Issuers Staying on the Sideline
Indonesia recent market volatility has caused some issuers to cancel the bond issuance this year. Las week, Tower Bersama Infrastructure Tbk (TBIG:IJ) has decided to cancel the sale of IDR 3.2 trillion bond from its remaining continuous bond I program due to unfavorable market condition. The company actually has completed the book building period for IDR.
Read More...Selling Abates on Improving Indonesia Market Sentiments
We see Indonesia bond market prices have recovered in last week trading with the yield on medium term bonds (5-7y) and long tenured bond (10y) tighten 7-11bps while short term bond only widen 3 bps. Recovery in corp bonds market was also seen in government bonds given foreign net sell minimized to Rp 1.2 trillion.
Read More...Indonesia Two Banks Outlook Downgraded on Weakening Asset Quality
On rating front, Pemeringkat Efek Indonesia (Pefindo) has downgraded the outlook on two domestic banks namely Bank DKI and Bank Muamalat to Negative from stable. The downgrades were driven by the probability of further deterioration of their asset quality due to increasing trend of NPL and SML. Bank DKI’s NPL ratio spiked to 7.3% in.
Read More...Another Indonesia Bond Market Downgrade Week
On the rating front, Pemeringkat Efek Indonesia (Pefindo) downgraded another company last week. Pefindo lowered Trikomsel Oke, Tbk (TRIO:IJ) rating to idBBB (from idBBB+) though the outlook was revised to stable from negative. Its convertible bond’s rating was also slashed to idBBB from idBBB-. The downgrade was driven by its weakening capital structure and cash.
Read More...Waskita’s New Bond Offering Lightens Primary Activity
The book building period for Waskita Karya, Tbk (WSKT:IJ) bond has ended on 18 September with an excess order book reached IDR 7.5 trillion, oversubscribed 5 times. As the bond received strong demand, Waskita able to set the coupon rate at a lower limit with Series A (3 years) offered at 10.4% and Series B.
Read More...Indonesia Credit Yields Widened Tracking the Rally of Govvies Yields
Indonesia corporate bonds yield continued widening on last week trading with the yields short tenor bonds rose faster than longer dated bonds. Short term bonds in AAA space climbed an average of 22 bps WoW while medium term papers only widened by 8 bps WoW. Based on the rating front, we saw AA and A.
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