JAKARTA (TheInsiderStories) – Followings are some market news that will serve your investment compiled by our team :
*Indonesia Stock Exchange (IDX) expects the average daily transaction to reach Rp 8 trillion in 2017. This number considerably higher than this year target at average of Rp 6.6 trillion. President Director of IDX Tito Sulistio said the transaction value is set based on analysis of historical data and a number of initiatives that will be carried by IDX. In addition, the improved economic conditions Indonesia is also believed to boost the value of the transaction. In pursuit of the average daily transactions value of Rp 8 trillion, the self-regulatory organization planned to establish a limited liability company in charge of securities financing that is targeted to start operating in the second half of 2017.
*PT Indocement Tunggal Tbk (INTP) inaugurated the operation of new plant, Plant 14, in Citeureup, Bogor, West Java, on Oct. 20. This factory has an installed production capacity of 4.4 million tons of cement per year. President Director of Indocement Christian said the company cooperates with the Chinese Group Tianjin Cement Industry Design and Research Institute Co. Sinoma Engineering Ltd. in constructing the plan, which began since October 2013.
*PT Bumi Serpong Damai Tbk (BSDE) finally completed the process of issuing US$200 million worth of bonds through its subsidiary, Global Prime Capital Pte Ltd (GPC). The new bond’s coupon is set at 5.5% and will mature in 2023. Hermawan Wijaya, President Director of BSDE, said bonds proceeds will be used to complete the repurchase of senior bonds denominated in US dollar worth $225 million with interest rate of 6.6% maturing in 2020. BSDE managed to buy a principal amount of $146.42 million, so that the maturity will be lengthened until 2023. Thus, the company now has only a senior bond of $78.58 million which will mature in 2020. The remaining funds will be used as capital expenditure on additional savings plan land acquisition, property development investment, infrastructure development area of BSD City as well as other business developments.
*PT Sorini Agro Asia Corporindo Tbk (SOBI) plans to attract loans worth US$100 million from PT Cargill Indonesia for debt refinancing and working capital. In a prospectus published on Oct. 20, Sorini said, the loan to be drawn through Cargill Indonesia is a short-term revolving loan scheme. The goal, for working capital needs, business strategy, the company’s support operations, as well as replacing the existing loan. By the end of June 2016, total liabilities of SOBI reached Rp1.68 trillion. Some lenders extend credit with a revolving scheme to producers of sorbitol, among others Cargill Asia Pacific Treasury Ltd, Singapore with a limit of $75 million, Deutsche Bank AG amounted to $52.5 million, and The Bank of Tokyo-Mitsubishi UFJ Ltd for $50 million. The company will seek shareholder approval plan related to the transaction at the EGM to be held on Nov. 28.
*Switzerland food manufacturer Nestle has cut its sales target for this year from 4.2% to only grew 3.5%, after the first nine months of 2016 grew only 3.3%. Until September 2016, Nestle earned revenues of SFr65.51 billion from SFr64.86 in the same period in 2015. As with other food companies, manufacturer of KitKat and Nescafe has to compete with similar manufacturers in the middle of deflation selling prices in central Europe as well as commodity prices slumped. Nestle also had to work hard to maintain market share in key markets such as China and Brazil. Manufacturer competitors like Unilever have raised prices to offset weakening currencies in some areas like sales in the UK. Meanwhile, Nestle still chose to increase the production volume. (*)