SUN transactions jumped this week

as published in Bisnis Indonesia daily newspaper

Saturday, 03/10/2009

SUN transactions jumped this week

JAKARTA: The average transaction of government's treasury bonds (surat utang negara/SUN) this week through the level Rp5, 42 trillion per day, above the weekly average since the beginning of the year.

However, the price index of government bonds fell yesterday was caused by profit taking action immediately after the bond price index is the highest level through Thursday.

According to the data receiver Bond Transaction Report which published by Indonesia Stock Exchange (IDX/Bursa Efek Indonesia), all series of SUN's transactions throughout the week that exceeds average monthly trading in June had soared in the level of Rp3, 71 trillion per day.

In the second week in June, the average level of treasury bonds trade reached Rp5,33 trillion from the action of buying and selling in large numbers the last few days.

Since the beginning of the year, average daily trading data in the first half SUN recorded Rp2,9 trillion per day.

The data from Inter Dealer Market Association (IDMA/Perhimpunan Pedagang Surat Utang Negara) showed price declines occurred in almost all the series yesterday. Declining prices caused the price index fell by 14 basis points (bps) from 95.24 on Thursday to 95.1 yesterday.

Decrease in the price index that reflected the decline in the FR0047 series' price decreased by 62 bps from level to level 94.12% 93.50% and boost the yield by 8 bps to 10.81% level. Price and yield conflicting, with the ratio of 100 bps is equal to 1%.

The FR0047 series is the most traded series this Friday that reach level Rp1, 34 trillion, which followed a series of retail bonds (ORI) 003 series Rp1, 2 trillion and FR0039 series of Rp727 billion.

Head of Debt Capital Markets from PT BNI Securities Sukartono assess the action took profit bond market players are still reasonable, given the high prices this week.

"It was unusual, because the market would normally Indonesia fell sharply after rising," he said when contacted by Bisnis last night.

He explained that market participants typically perform the same action when there is news or sentiment that spurred the transaction.

In addition, said Sukartono, market sentiment is still marked by economic improvement and the Bank Indonesia rate may reduced to as low as 6% this year and the potential increase in interest rates are still long.

He believes foreign investors ownership in SUN will continue to increase from 25 September for the position of Rp93, 03 trillion due to persistence of the series of positive sentiment this month.

Director of the Treasury Bonds - Directorate General Debt Management Office Ministry of Finance Bhimantara Widyajala said as of 1 October, the value of foreign ownership increased to SUN for Rp93, 99 trillion, or for 16.57% of total government issued SUN.

"The value was increased compared to Rp760 billion at the end of September position." (21)