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Thursday, February 24, 2011

SUN foreign investors returns

BI/bursa
24/2/2011
Irvin Avriano A.
Bisnis Indonesia

SUN foreign investors returns

JAKARTA: Foreign investor start to enter the Indonesia goverment bond (surat utang negara/SUN) market again after their ownership boosted to 30.75%, the highest level since January 11th.

Based on Directorat General Debt Management Office MoF data, the foreign ownership reach IDR198.8 trillion on February 18th compared with SUN outstanding IDR646.37 trio.

Through January-February, foreign investors' fund flew out from the SUN market and formed a sell force that makes their price decline and the yield jacked-up.

But the return of its kind of investors haven't shown by it price movements, related to position of Inter Dealer Market Association (Perhimpunan Pedagang Surat Utang Negara/Himdasun) price index that only reach 97.6 level at the same periode, still under the 102.1 level that formed in January 11th, relatively stagnant through the same days.

The stagnant price of also showed by Indonesia Bond Pricing Agency (IBPA/PT Penilai Harga Efek Indonesia) total return index that only stands on 128.9 level, below 132.96 in the same period.

PT BNI Securities Bond Analyst Ariawan said it can be said that the foreign investors returning in a slow motion and buy in a little amount but continously. It also showed that foreign investor's liquidity still high.

Hence, he also assumed that the investor still in a wait and see period, especially global investors, that caused by high yield in the US Treasury market.

Senior Economist PT Bank Internasional Indonesia Tbk (BII) Samuel Ringoringo said the 2-years SUN could corrected and boosted its yield higher to around 8% in October. But he also assess that the SUN market start to ease because the investor is calm down especially formed by high demand in more than 5-years SUN.

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