JAKARTA (TheInsiderStories) – Here’s several news could affect stock market condition compiled by our team and Mandiri Sekuritas :
*Perceptions of the risks of investing in the country continue to shrink. This is reflected in a reduction in the credit default swap (CDS). Senior Analyst Pasar Dana Beben Ferry Wibowo predicts, in 2017 Indonesia CDS with tenor of five years will move in the range 130-150. While the yield on 10-year government securities in the range of 7.4% -8.6%. On Wednesday (28/12), the yield of the benchmark 10-year government securities, namely FR0056, at the level of 7.87%.
*The Italian government prepared to inject funds amounting to €6.5 billion or US$6.8 billion for the third largest bank in the country, Monte dei Paschi di Siena, Italy. The amount of the rescue fund for the Monte dei Paschi is much larger than previously thought. This impact of the steps the European Central Bank (ECB) to revise the threshold shortage of bank capital in the EU is €8.8 billion from the previous amounting to €5 billion. Last week, Monte dei Paschi di Siena asked government support to recapitalize these banks, as well as preventing the crisis as investors retreated to disburse around €5 billion to the bank. With this cash injection, the Italian government will have a 70% stake in the bank. However, Monte del Paschi issues unresolved with just a cash injection from the government. The reason, they need to seek additional funds of about € 2.3 billion from institutional investors. The options are to convert the bonds owned by the investor in the form of shares, as required by EU rules in dealing with the banking crisis.
*PT Bank Permata Tbk (BNLI) repay maturing bonds of Bond I Phase I in 2013 with a total value of Rp689,64 billion. The bond with Series B maturing on Dec. 24, 2016 with a principal amount of Rp672 billion. The source of funding comes from internal cash.
*PT Indofarma Tbk (INAF, Rp4,500) targeting sales will reach Rp2.11 trillion in 2017. Thus the sales target, the company’s net profit will reach Rp30,482 billion. The increase in profits was underpinned by a decrease in production costs and the cost of interest on loans, said President Director of Indofarma Arief Budiman. Mentioned, the increase in sales will be generated from the sale of drugs and raw materials of herbal medicine.
*PT Evergreen Invesco Tbk (GREN, Rp252) to hold a rights issue in order to save the PT AJB Bumiputera to get serious attention from the Financial Services Authority (FSA). By the end of this year, the FSA issuedari rights permit has not been obtained because there are still administrative requirements have not been met Evergreen.
*PEFINDO affirmed the ratings of PT Pegadaian (Persero) at AA + with a stable outlook or prospects. Based PEFINDO report, the rating is valid until Feb. 14, 2017 or the date of maturity bonds I/2012 series C Rp 200 billion.
*PT Barito Pacific Tbk (BRPT, Rp1.430) has completed the process of repurchase (buyback) of the company’s share is less than 2% of the total issued and paid-up capital of the company. Based on information published on Tuesday, the buyback is done in the period 26 September 2016 until December 25, 2016. The number of shares purchased is a number with a value of 39.2506 million share repurchase amounting to Rp 58 billion and the average purchase price of US $ 1478.93 per share.
*West Texas Intermediate oil (WTI) crude oil prices closed lower from its highest level in 17 months following the industry data that signify the rise in US crude stocks. WTI for February delivery fell 0.4% to US$53.66 a barrel on the New York Mercantile Exchange. Meanwhile, Brent crude for February delivery rose 13% to $56.22 a barrel on the ICE Futures Europe exchange based in London. As reported by Bloomberg, the American Petroleum Institute said on Tuesday night that the national crude oil inventories rose 4.2 million barrels last week.
*World gold prices not much to record changes to the transaction on Wednesday (28/12). Based on data from CNBC, the price of gold on the spot market rose 0.18% to US$1,140.91 per troy ounce after earlier touching its highest level since December 14 at $1,148.98. While the price of gold contract for February delivery was perched at US $ 1,140.90 per troy ounce. The decline in gold prices this time triggered by the strengthening US dollar. For your information, the price of gold has dropped more than 8% in November in line with the increase in the yield of US Treasuries after Donald Trump won the US election. Speculation, his commitment to the infrastructure sector will boost economic growth. On Dec. 15, the price of gold even touched the lowest level in 10 months.