JAKARTA (TheInsiderStories) – Here’s several news could affect stock market condition compiled by our team and Mandiri Sekuritas :
*PT Hanhwa Life Insurance Indonesia, the local unit of South Korean insurance Hanhwa Life, plans to go public in 2019, selling 20 percent of its shares through an initial public offering (IPO). The IPO plan was part of efforts to meet the Financial Service Authority’s (OJK) 80-percent foreign ownership limit for insurance companies, Hanhwa Life Insurance Indonesia CEO Jung-seop Hyun said. As part of a commitment to work on the insurance market in the country, South Korea-based Hanwa Life as the parent company has injected Rp 1.72 trillion (US$129.7 million) in cash, boosting Hanwa Life Indonesia’s total assets by 435 percent to Rp 2.2 trillion in 2016 compared to Rp 397 billion in 2015.
*Domestic cement sales fell below target last year due to delays in some infrastructure projects, cement producer lobby group Indonesian Cement Association (ASI) claimed. The country used up 62 million metric tons of building material from initially targeted 65 million metric tons in cement sales in 2016, the same as in 2015, ASI data showed. ASI Chairman Widodo Santoso said delayed infrastructure projects include highway constructions in East Kalimantan, Manado-Bitung and Medan-Kuala Namu. Cement sales in Java contracted by 2 percent to 33.7 million metric tons. In Kalimantan, it dropped 12 percent to 4.1 million metric tons.Sumatra, Sulawesi, Bali and Nusa Tenggara and Maluku and Papua, on the other hand, saw increase in sales, due to road, dam, power plant and smelter projects in the region. The country’s cement industry has an installed capacity of about 100 million metric tons in 2017, also the largest in the region.
*PT BFI Finance Indonesia Tbk offer bonds worth Rp1 trillion, consisting of three series with the interest range of 8.1% to 9.1%. BFI Finance’s public offering Bond III BFI Finance Indonesia Phase I 2016 Rp1 trillion. While, PT Bank Bukopin Tbk (BBKP, Rp625) ready to issue bonds worth Rp1.6 trillion, with interest set at 11%.
*Indonesia Stock Exchange is targeting an average daily transaction value of Rp 8 trillion. To achieve these targets the capital market regulator has several strategies. One of them by pushing 535 thousand investors registered to be active transaction. Currently active investors still amounted to 180 thousand is targeted to increase to 250 thousand.
*The government’s decision to raise value-added tax (VAT) and excise of tobacco (CHT) this year believed not to make a big non performance of listed companies fell by the end of 2017. New load of two fiscal instruments will be covered by raising the price of cigarettes to maintain margin revenue.
*Coal mining company of the Bakrie Group, PT Bumi Resources Tbk (BUMI, Rp370), targeting revenues of more than US $ 5 billion in 2017, driven by higher sales and an increase in the selling price of coal.