Irvin Avriano A. & Stefanus Arief S. (09)
Analyst: SUN market will flat next week
JAKARTA: Analyst predicted price of the Indonesian government bond (surat utang negara (SUN) will move slightly next week.
Ramdhan Ario Maruto, PT Anugerah Securindo Indah Head of Fixed Income Division, said it will happen because local investor will hold the hiked price that happen before to limit the gain they already had.
"They want to limit their target in the next year, that will underpinned by how much gain they earn this year," he said to Bisnis today.
He said the price record-breaking that has occurred almost every day also has entered the final stage because the transactions volume of local market players have also been declining, indicating speculative transactions is reduced.
That, he said, reflected the position of the price index of Inter Dealer Market Association (Himdasun) which scored a record level of 1,347 on October 6th, last week, but began to decline at the weekend to the 1,345 level.
Data foreign investors ownership in those securities issued by the Directorate General of Debt Management also showed a synergistic data. Foreign ownership was also a record on October 6th to a level of 28.97% or IDR186.94 trillion of the total outstanding IDR645.08 trillion.
Ownership of foreign investors came back down on October 7th to a level of 28.9% or a total of IDR186.2 trillion of the total outstanding amounted to IDR644.26 trillion.
Ramdhan added, in general, SUN and corporate bond markets are short of supply, reflected in the price of the investment instrument which continues to increase almost every day.
The condition, he continued, also kept investors in lack of instruments to be targeting its investing strategy, especially in lieu of old bonds sold to realize a profit.