In today’s briefing:
- AKR Corporindo (AKRA IJ) – Chemically and Industrially Enhanced
- Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
AKR Corporindo (AKRA IJ) – Chemically and Industrially Enhanced
- AKR Corporindo (AKRA IJ) paints an optimistic finish to 2021, with indications of +20-30% QoQ growth for both chemical and fuel distribution in 4Q2021.
- The outlook for FY2022 looks equally promising for the distribution business, with a ramp-up of retail fuel distribution plus a strong pipeline of demand for its JIIPE industrial estate.
- AKR Corporindo (AKRA IJ) remains an interesting industrial proxy for the recovery of the overall Indonesian economy trading at a significant discount to its historical average.
Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
S&P and Nasdaq were lower again on Friday with the indices down 0.7% and 1.2% respectively. Most sectors were in the red, led by IT and Industrials down 0.9-1%. The US 10Y Treasury yield dropped 6bp to 1.93% as risk-off sentiment around Russia –Ukraine tensions weighted on markets. European markets were also lower with the DAX down 1.5% and the CAC and FTSE down 0.3% each. Brazil’s Bovespa closed 0.6% lower. In the Middle East, UAE’s ADX was down 0.6% and Saudi TASI closed 0.1% lower. Asian markets have opened broadly lower with Shanghai, HSI and Nikkei down 0.4%, 0.7% and 0.8% respectively, while STI was up marginally by 0.1%. US IG CDS spreads were 0.9bp wider and HY CDS spreads were 4bp wider. EU Main CDS spreads were 2.4bp wider and Crossover CDS spreads were 15bp wider. Asia ex-Japan CDS spreads were 0.7bp wider.
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