Search result for: "BBRI"

On this week trading, there were at least three issuers who stated to get the bond issuance out this year. Modernland Tbk (MDLN:IJ idA/Stable) seeks for the second tranche issuance this year following the first tranche release last year. The issuance will be part of IDR2 trn bond program of which IDR 750bn has been.

PT Bank Nagari is offering 10.6% – 11.1% for 5y conventional and sukuk bond with the issue size of IDR 500 bn and IDR 100 bn respectively. Bank Nagari and its conventional and sukuk are rated at A by Pefindo. The book building will be on 8 – 17 Dec 2015 while the public offering.

The recent political development inside PDIP which led to the speculation that the party will endorse Jokowi as a presidential candidate is premature, in our view. But we believe Jokowi nomination will lower political uncertainties and positive for the financial markets. November 13 trade data also showed that fundamental economy of Indonesia is improving. Large.

While we are still cautious on Indonesia’s short-term equity market outlook owing to economic and political uncertainties, we are of the view that its long-term fundamentals are intact. We foresee 2014 GDP growth dipping to 5.4% while Bank Indonesia (BI) may have to raise the BI rate to 7.75-8.25%. As short-term macroeconomic fundamentals are weak,.

BBRI’s investments in the micro business ensures sustainability of its micro lending market share, growth and asset quality. An enlarged network, growing e-banking and emphasis on deposits should protect BBRI’s funding profile. The earnings risks are rising credit cost and NIMs. BBRI is our Top Pick as its share price correction has driven its multiples.