Asian market opened in green this morning as Brexit factor eased. Nymex’s crude oil rose 0.6% to US$48.13 per barrel in Asian trading this morning and gold increased 0.25% to US$1,321.20 per ounce. The composite index of the Indonesia Stock Exchange (IDX) gained 0.95% to close at 4,882 on Tuesday (June 28) with trading value reaching Rp9 trillion, higher than daily average of Rp5.67 trillion. Foreign investors booked net buy of Rp691.1 billion in local stocks, bringing year-to-date net buy to Rp9.56 trillion. The rupiah strengthened to Rp13,256 against the US dollar Tuesday (June 28). Stock market and the rupiah experienced a sharp jump on Tuesday (June 28), as the deliberation on the Tax Amnesty Bill boosted sentiment.

The House of Respresentatives (DPR) has on Tuesday (June 28) approved in a plenary session the Tax Amnesty Bill, though some factions delivered notes and their concerns. The revised 2016 state budget (APBN-P) was also approved on the same occasion. The repatriated funds expected as a result of the implementation of tax amnesty bill would benefit the local currency.

The Brexit factor has been replaced by domestic major issues, which have prompted the local markets to regain or rebound from recent corrections. Tax Amnesty bill is also expected to benefit the property sector in the country, which through fixed-income mutual fund instrument and real estate investment fund (DIRE) will absorb the repatriated funds.

On the home front, investors’ perception of promising domestic economic outlook, stemming from a reduction of the BI Rate and goverment policy packages aimed at improving the investment climate, along with the accelerated implementation of infrastructure projects, helped to drive appreciation of the rupiah .

PT MNC Investama Tbk (BHIT), controlled by Hary Tanoesoedibjo, targets to raise Rp1.43 trillion through issuing 7.78 billion new shares via preemptive rights scheme. Trading of rights is scheduled for July 15-28, 2016. The existing shareholders would potentially face a 16.67% shares dilution if they failed to exercise their portion. The proceeds will be used pay debt of Rp558.04 billion to Smart Empire Group Ltd and to fund working capital (Rp877.73 billion).

PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) plans to issue bonds worth Rp1 trillion, offering annual coupon rate at 7.5-8%. The bonds have a tenor of 370 days and 3 years. PT Danareksa Sekuritas and PT Indo Premier Securities act as underwriters for the bond issue.

PT Multipolar Tbk said its unit, PT Indonesia Media Televisi (IMTV), has in June 24, 2016 obtained loan facility of US$50 million from CIMB Bank Berhad (Singapore Branch). The loan has tenor of 5 years.

PT Profesional Telekomunikasi Indonesia (Protelindo), subsidiary of PT Sarana Menara Nusantara Tbk, has in June 24, 2016 obtained loan facility of Rp500 billion and US$38 million from The Bank of Tokyo-Mitsubishi UFJ Ltd (Jakarta Branch) with tenor of 5 years.

Protelindo also secured loan facility of Rp1 trillion from Bank Negara Indonesia with tenor of 84 months and obtained loan facility of Rp1 trillion from Bank Sumitomo Mitsui Indonesia with tenor of 5 years. The loan will be used to purchase tower assets of PT XL Axiata Tbk (EXCL).

PT Chandra Asri Petrochemical Tbk (TPIA) has in June 27, 2016 secured loan facility of 4 billion baht Thailand, equivalent US$110 million, from Kasikornbank PCL. Meanwhile financing firm PT Adira Dinamika Multi Finance Tbk, unit of Bank Danamon, plans to issue bonds worth RpRp1.7 trillion and Islamic bond (sukuk) worth Rp86 billion, offering in July 19-21, 2016.

OTHERS

Newly-listed PT Duta Intidaya Tbk (DAYA), engaged in health and beauty products trading and operator of Watsons outlet, targets 20% sales growth this year with entering into e-commerce business. The company made a 5% gain in its shares price on its trading debut Tuesday (June 28), closing at Rp189.

PT Panin Financial Tbk plans to sell 806 million shares of PT Asuransi Multi Artha Guna Tbk (AMAG), representing 16.1% of AMAG’s paid-up capital, for Rp435.16 billion value. Both companies have in June 27, 2016 signed the conditional sale and purchase agreement (CSPA) for the transaction.

PT Panasia Indo Resources Tbk has converted its shareholders loan with shares of PT Sinar Tambang Asthalestari (STA). The company has injected Rp187.17 billion funds through conversion of shares, boosting its capital placement in STA to Rp572.72 billion (572.72 billion shares).

PT Bank OCBC NISP Tbk also reported to have extended loan payment amounting Rp200 billion it provided to PT Austindo Nusantara Jaya Tbk and subsidiaries, to August 24, 2017.

DISCLAIMER: AUTHOR HAS NO POSITION IN STOCKS MENTIONED

By Yohannes Obor

Copying, redistributing, and retransmitting this article is a violation of copyrights.