In today’s briefing:
- Bank Negara Indonesia – What on Earth Is Management Thinking?
- Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
- Indonesia Ecommerce Enabler Sirclo to Acquire Warung Pintar
Bank Negara Indonesia – What on Earth Is Management Thinking?
- BNI posted a poor set of 4Q21 results, given the generally ignored continued credit deterioration;
- Results were heavily reliant on a negative 10.0% tax rate for 4Q21, which goes away in 2022; and
- BNI recently announced a “me too” deal to acquire a 63.9% stake in Bank Mayora at 2x book, at a time when BNI’s own house is a dumpster fire.
Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
US equity markets ended lower again with the S&P and Nasdaq ending up 1.2% and 2.3%. Sectoral losses were led by IT, Communication Services and Consumer Discretionary, down 1.8-2.3%, while Energy was the only gainer, up 4%. US 10Y Treasury yields were 2bp lower at 1.76%. European markets recovered slightly yesterday with the DAX, CAC and FTSE up 0.8%, 0.7% and 1%. Brazil’s Bovespa closed 2.1% higher. In the Middle East, UAE’s ADX was up 0.1% and Saudi TASI was up 0.3%. Asian markets have opened broadly higher – Shanghai, HSI and STI were up 0.1%, 0.2% and 0.9% while Nikkei was down 0.4%. US IG CDS spreads were 1.2bp tighter and HY CDS spreads were 7.5bp wider, EU Main CDS spreads were 0.9bp tighter and Crossover CDS spreads were 4.3bp tighter. Asia ex-Japan CDS spreads were 0.8bp wider.
Indonesia Ecommerce Enabler Sirclo to Acquire Warung Pintar
- Sirclo, an Indonesia-based ecommerce enabler, has announced that it is set to acquire Warung Pintar
- The value of the deal is undisclosed, but the process is expected to be completed within the first quarter of this year
- Sirclo said that the deal helps its plan to offer more comprehensive online and offline commerce solutions for its clients
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