Continuing Rally by End of October

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Daily Commentary (31- Oct):

All rupiah asset classes closed with gains by end of October. The benchmark for 5yr, the 5yr FR63 was traded at 90.1 (+0.4%), yielding 8.29% (-10.2 bps); the 10yr FR64 at 84.37(+0.2%), yielding 8.58% (-13.2 bps); the 15yr FR65 at 82.6 (+0.5%), yielding 8.76% (-6.1 bps); and the 20yr FR75 at 86.3 (0;6%), yielding 8.97% (-8.1 bps) on Wednesday. According to PLTE data, foreign keep posting net buy of Rp830bn, – mostly coming from non-benchmark series (+Rp681bn). Foreign ownership in government bond based on settlement date as of 29-Oct (reflecting trading on 25-Oct) was at Rp863.4tn (inflow of Rp12.5tn mtd, or +Rp27.2tn ytd) or 37% of total outstanding.

JCI also went up 0.7% to 5,831.7 (-2.4% mtd or -8.2% ytd). Stock trading value reported Rp 9.3tn with foreign investors net inflow of Rp1.5tn (still outflow of Rp3.4tn mtd or -Rp54.6tn ytd). Rupiah appreciated by 0.13% to IDR 15,203/USD (depreciated 2% mtd or 12.1% ytd).

On the global market, US stocks closed a second straight day of solid gains, with Dow Jones increasing 0.97% to 25,115.7 and S&P 500 up 1.09% to 2,711.7 along with continuing 3Q18 corporate result releases. Meanwhile, the UST yield curve was steepening slightly, with 2yr yield rising by 4 bps to 2.88% and the 10-yr yield adding 5 bps to 3.16%. The US WTI crude oil fell 1.3% to USD 65.31/bbl, reaching its lowest level since August as domestic crude inventories rose for the sixth straight week. (Source: Mandiri Sekuritas)

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