In today’s briefing:
- Bank Negara Indonesia (BBNI IJ) – Catching the Digital Wave
- Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
Bank Negara Indonesia (BBNI IJ) – Catching the Digital Wave
- Bank Negara Indonesia (BBNI IJ) released a solid set of FY2021 results last week, with its PPOP coming in above consensus and guidance being met on all fronts.
- The bank’s loan mix is moving towards lower risk assets but cost of funds has fallen significantly at the same time plus its progress on digital banking is impressive.
- The bank’s increasingly digital credentials should lead to an upward re-rating of the bank’s valuations, which look attractive given the expected recovery in earnings and higher ROEs beyond 2022.
Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
US equity markets saw a sharp rally on Friday with the S&P and Nasdaq ending 2.4% and 3.1% higher. Sectoral gains were led by IT and Real Estate, up 4.3% and 3.4% each. US 10Y Treasury yields eased 2bp at 1.79%. European markets recovered with the DAX, CAC and FTSE down 1.3%, 0.8% and 1.2%. Brazil’s Bovespa closed 0.6% higher. In the Middle East, UAE’s ADX was up 0.4% and Saudi TASI closed 0.7% higher on Sunday. Asian markets have opened broadly higher with HSI, STI and Nikkei up 1.3%, 0.5% and 1.5% while Shanghai was down 1%. US IG CDS spreads were 1.3bp wider and HY CDS spreads were 5.1bp tighter, EU Main CDS spreads were 1.7bp wider and Crossover CDS spreads were 5.7bp wider. Asia ex-Japan CDS spreads were 1.6bp wider.
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