Syailendra Capital: Indonesia 10-Year Real Bond Yield Still Attractive


The Syailendra Capital Research Team stated that Indonesia's 10-year real bond yield is still attractive compared to other developing countries, which is 5.38% and is in the first position in Southeast Asia.

Based on Bloomberg data managed by Syailendra as of March 2021, countries in Southeast Asia that are in second place are Malaysia with a real yield of 3.16%, followed by Thailand at 3.14%, and lastly, Vietnam, around 1.75%.

"However, significant demand from foreign investors has not been seen, and ownership levels are still in a downward trend," wrote Syailendra as quoted on Monday (19/4).

Syailendra sees that there is still a risk of supply-demand imbalance in government bonds this year, but the issuance size could decrease, and there is also an excess budget balance in 2020.

"We recommend keeping the portfolio focused on medium tenors with a range of 5-10 years as long as the 10-year yield level is in the 6.0-6.5% range, which is a buying opportunity," he said.

Simultaneously, the JCI valuation using the price to book can still be said to have upside potential. Since 2015, the PB IHSG has been in the range of 2.1-2.5 times compared to the current level, still at 1.94 times.


Penulis : Widya