Markets / Cement Sector / Mining Sector / BMRI / Jaya Agra / Picture of the Day (update1) - Credit Suisse

Highlights of the Day

1. Markets: Review and Outlook
2. Indonesia Cement Sector: Awaiting the Land Reform Bill
3. Local News: Mining Sector / BMRI / Jaya Agra Wattie
4. Picture of the Day: Honda Spacy – Launched in Early May 2011

1) Markets: Review and Outlook

Equities: The JCI opened the week with 2.4% correction to 3778 on Monday, weighed by across the board, heavy profit-taking following its new all-time high last week. Turnover was decent at US$630 mn, mostly driven by selling activities in the afternoon session. Follow through selling, weak regional markets open and renewed concerns over EU sovereign credit crisis would likely continue to weigh on the JCI today.

Fixed Income: The bond market was weak yesterday with yields up by 10bps, largely driven by anxieties over the EU credit crisis. Similarly, the NDS (Non-Deliverable Cross Currency Swap) was higher by 25 bps, amid the unwinding of the structured notes in the market. The government stated that it is allocating Rp3.0 tn (US$ 350 mn) for bond buyback in times of crisis, which should be a confidence booster for the market. Benchmark 10-year government bond yield stood at 7.47%.

Currency: The rupiah ended lower at 8593 against the greenback, in-line with the sell-offs in Indonesia ’s bond and equities markets.