In this briefing:
- INDO Snippets: Second Presidential Debate, BNLI & PNBN – This Time Is Real?
- Bank Danamon Goes Ex-Rights
- Memory Chips and the Elasticity Myth
- Jakarta Trip – On the Ground Insight Feb 2019
- RRG Global Macro Weekly – Election Volatility Expected in India, Indonesia and Thailand
1. INDO Snippets: Second Presidential Debate, BNLI & PNBN – This Time Is Real?
INDO Snippets brings together substantive and significant on the ground chatter that may potentially have a meaningful impact on the Indonesian Equity Market.
Today on INDO Snippets:
- The second presidential debate was held last Sunday in Jakarta. Key moments are discussed below.
- Bank Permata (BNLI IJ) stake sale rumor is heating up on Standard Chartered (STAN LN)‘s statement. Both STAN and Astra International (ASII IJ) have been looking for buyers and Bank Mandiri Persero (BMRI IJ) and Sumitomo Mitsui Financial Group (SMFG) are said to be the strongest two candidates in winning the bid.
- ANZ’s divestment in Bank Pan Indonesia (PNBN IJ) may come to a close this year. We discussed the potential impact on holding companies Panin Financial (PNLF IJ) and Paninvest (PNIN IJ).
2. Bank Danamon Goes Ex-Rights
The process of the merger between Bank Danamon Indonesia (BDMN IJ) and Mitsubishi Ufj Financial (8306 JP)‘s local unit Bank Nusantara Parahyangan (BBNP IJ) is proceeding apace.
Today, the shares go ex-rights for shareholders looking to both vote on March 26th and, assuming the vote goes through, to elect to receive cash of IDR 9,590 instead of continuing to hold shares. BDMN shares are trading down, as expected.
3. Memory Chips and the Elasticity Myth
During recent earnings calls memory chip makers have postulated that the market will return to higher margins once price elasticity causes demand to increase. This popular myth needs to be treated with great skepticism since, as this Insight will reveal, short-term price elasticity has a negligible impact upon memory chip sales if it has any impact at all.
4. Jakarta Trip – On the Ground Insight Feb 2019
Airport connectivity in Indonesia has reached a milestone last year when they announced the airport express but has there been any improvements in the service and load factor? The management company, Railink, definitely tries its best to upkeep their service level and increase awareness. Indonesian usage of internet through smartphones also tells about how important smartphones as a center of their daily life.
Blue Bird (BIRD IJ) has gone creative when it comes to increase their online and offline presence; not only having an app that is comparable to Grab and Uber but also creating a dedicated taxi waiting area in a mall. Is Go-jek only a ride hailing app? My experience on Go-send tells otherwise.
How about the upcoming Presidential election? What will happen in a rematch between Jokowi vs Prabowo? Does Prabowo really have no economic policy? His answer when asked on what sort of supportive policies to help Unicorns grow shed some light on his understandings and knowledge on economic policy.
5. RRG Global Macro Weekly – Election Volatility Expected in India, Indonesia and Thailand
- Volatility set to rise as Thailand, Indonesia and India all Face ElectionsRussia: Michael Calvey, a US citizen and one of Russia’s most prominent foreign investors, has been detained.
- Indonesia: Incumbent President and his challenger from the military are trying to outdo each other in spending largesse targeting rural poor ahead of the May election.
- South Africa: Recent inflation readings have been the lowest in a long time on lower fuel expenses. Expected to stay low.
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