Global Market Update
Sources: Statistics Singapore, S&P Global, Trading Economics, and Bloomberg.
Domestic Market Update
Sources:BPS, Moody’s Ratings, Bloomberg and PHEI.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.8505% - 6.9889% for tomorrow. Recommendations: FR0102, FR0081, FR0100, FR0091, and FR0097.
- On August 2nd, 2024, the yield on US 10-year government bonds continued to decline, reaching its six-month low of 3.7904%, down by 13.9 basis points from January 2nd, 2024.
- Retail sales in Singapore fell by 0.6% in June 2024, after rising 2.2% in May. Sales decreased for furniture and household items (-1.9%), watches and jewelry (-1.7%), and other categories (-3.8%).
- The S&P Global UK Composite PMI for July 2024 was revised up to 52.8 from the initial 52.7 estimate, indicating faster growth compared to June's 52.3. This increase in private sector activity was driven by higher demand, the strongest since April 2023, with a positive contribution from exports.
Sources: Statistics Singapore, S&P Global, Trading Economics, and Bloomberg.
Domestic Market Update
- On August 5th, 2024, the yield on the 10-year Indonesian government bond closed at 6.8696%, continuing its decrease. Meanwhile, the ICBI continued to rise, reaching a new high of 386.5794 as a result.
- In Q2-2024, Indonesia's economy grew by 5.05 percent year-on-year. The Accommodation and Food Service sector saw the highest growth on the production side at 10.17 percent, while Household Non-Profit Institutions' consumption expenditure (PK-LNPRT) had the highest growth on the expenditure side at 9.98 percent.
- Moody's upgraded Alam Sutera Realty Tbk’s (ASRI:IJ) corporate family rating (CFR) to B3 from Caa1 with a stable outlook due to the early redemption of its US dollar bond, reducing refinancing risk and interest expenses. An upgrade is possible if the company improves operations, achieves marketing sales of IDR 3.0-4.0 trillion, and enhances net operating cash flows, with leverage below 4.0x-4.5x and interest coverage above 2.5x.
Sources:BPS, Moody’s Ratings, Bloomberg and PHEI.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.8505% - 6.9889% for tomorrow. Recommendations: FR0102, FR0081, FR0100, FR0091, and FR0097.
