Indonesia Market Summaries 27 August 2013

PT Bank Mandiri Tbk is studying the provisions of buyback stock

Corporate Secretary of PT Bank Mandiri Tbk (BMRI, Rp7.100) Mr. Nizon Napitupulu said that the company is studying the provisions of buyback stock. As is known, the Financial Services Authority (Otoritas Jasa Keuangan / OJK) allows issuers to buy shares without going through the GMS. However, buyback without AGM can only be done if the IHSG index fell 15% in three consecutive days.

These provisions are summarized in the OJK rules number 02/POJK.04/2013 about Buy Back of Shares Issued by Public Listed Company in the Market Conditions Fluctuate Significantly. According to the company, although the FSA already allow it, but the company is still studying the regulations, particularly related to the banking corporate action. (IMQ)

Hatta Rajasa claimed the government held a marathon meeting

Coordinating Minister Hatta Rajasa claimed the government held a marathon meeting after President SBY read the policy. The reason is, the policy must be realized in ministerial regulations form. Hatta admitted the government is concentrating on the Current Account Deficit (CAD).

According to the government to make sure to address the deficit. Today the economic ministers meeting back at the office Hatta Rajasa. The discussion today will focus on the reduction of fuel imports by increasing the use of biodiesel. (DetikFinance)

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PT Bank Mandiri Tbk will form a consortium of state-owned banks to obtain a target loans for 3 monorail projects

PT Bank Mandiri Tbk will form a consortium of state-owned banks to obtain a target loans amounting to IDR 8,4 trillion to support the construction of three monorail project.

"Bank Mandiri will hold PT Mandiri Securitas to form a consortium of state-owned banks in the financing of this project," said Director of Corporate Banking of Bank Mandiri, Fransisca Nelwan Mok, following the signing of a preliminary agreement launching Mock Up Monorail, in Madiun, East Java, on Monday. According to her, the proposed banking consortium will be approved by the project implementing consortium consisting of PT Bank Mandiri as leader of a consortium of lending banks, PT Adhi Karya, PT INKA, PT LEN, PT Angkasa Pura II, PT Pelindo, PT Telkom, PT Jasa Marga.

"First, We have to form the agreement from the internal and this is still under discussion and it could be multi-year, not in a year's time," she said.

In line with Fransisca, President Director of PT Adhi Karya, Kiswo Darmawan said that 30 percent of the source of funding comes from internal SOEs consortium and 70 percent comes from SOEs bank loans. "The funds will come from cash investments and loans companies, with each serving 30 percent and 70 percent," he said.

The Three monorail project to be built are Jakarta Link Transportation (JLT) in the Greater Jakarta area, Automatic Container Transporter (ACT) in Tanjung Perak, Surabaya and Automatic People Mover (APM) at Soekarno-Hatta Airport. For monorail that will be operated in the Greater Jakarta area requires a fund of IDR 7 trillion. As for the APM and the ACT require funds amounting to IDR 2,5 trillion each.

Indonesia Market Summaries, 6 May 2013

Market Synopsis for 3 April 2013

SMCB seeking Rp1tn to finance their Tuban II plant

Holcim Indonesia is currently seeking for Rp1tn to fund their second plant in Tuban, East Java where the company is aiming for bank loans. The company admits that funding will come from bank loan, ECA (export credit agency), and internal cash. SMCB claimed that the company needs more than USD300mn to construct the new plant which will be able to add capacity by 1.7mt by 2015. With the addition of 1.7mt each from the new Tuban I and Tuban II plants, SMCB will have a capacity of 12.5mt within 2 years. (Bisnis Indonesia).

Bank Mandiri (Rp9,850; Not covered) - AGM results

Bank Mandiri’s shareholders appointed Budi Sadikin as the new CEO, replacing Zulkifli Zaini, who has ended his 10-year term as the BoD member this year. Mr. Sadikin is Bank Mandiri’s Director of Micro and Retail Banking since 2006 when he moved from Bank Danamon. In addition to the change in top management, the bank declared a 30% dividend payout ratio from 2012 net profit, translating into Rp199.3/share. There is no change in the bank’s business strategy which is geared towards the wholesale transactions, retail payments and retail loans. (Bisnis Indonesia, Jakarta Post).   

Pertamina is expected to bear the cost for rationing program of subsidized fuel

The government mentioned that the funds to finance the rationing program of subsidized fuel will likely come from Pertamina. As a return, the government is planning to cut some amount of Pertamina’s dividend payment which is obliged in the 2013 government budget (Investor Daily).

Three major bank stocks dropped the JCI

In the second session today (14/3), Indeks Harga Saham Gabungan ( IHSG /  JCI ) is still unable to strength. At the close of trading, stock index trimmed 0.34% to a level of 4802.83.

Investors sold mainly for three blue chip stocks following:

Three major bank stocks dropped the JCI

• PT Bank Rakyat Indonesia Tbk (BBRI)
  
  BBCA prices plunged 2.84% to Rp 8.550,-. A number of securities to sell most of the bank's stock are CLSA Indonesia worth USD 132.6 billion, JP Morgan Securities Indonesia Rp 93.88 billion, and Krishna Graha Sekurindo Rp 38.72 billion.
• PT Bank Central Asia Tbk (BBCA)
  
  BBCA fell 0.93% to Rp 10,650. Biggest selling are Kim Eng Securities Rp 55.51 billion, Indo Premier Securities Rp 41.32 billion, and JP Morgan Securities Indonesia worth Rp 12.19 billion.
• PT Bank Mandiri Tbk (BMRI)
  
  BMRI lose 1% back to Rp. 9.900,-. Securities which posted the highest sell are Citigroup Securities Indonesia Rp 20.41 billion, Kim Eng Securities worth Rp 12.06 billion, and Credit Suisse Indonesia worth Rp 10.85 million. (Kontan)