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Indonesia Market Today - 20 May 2020

A. INDONESIA MORNING MARKET REVIEW
Wednesday (20/05/2020). After DJIA for 3 days gained around +1,349 points (+ 5.72%), finally on the 4th day it fell by -390 points (-1.59%) as the vaccine validity conducted by Moderna Inc.`s biotechnology company began to doubt (so the issuer`s shares dropped -10% overnight), as well as disappointing economic data and financial performance of listed companies which when combined with a decrease in EIDO by -1.11% and falling crude palm oil by -1.16% have the potential to be a negative sentiment for trading this Wednesday before the market off to celebrate Eid al-Fitr amid the continuing increase in the number of victims infected and killed, even increasing alias there is no sign of a decline due to the increasing indifference of the Indonesian people to Corvid19, due to the Corona Virus in Indonesia is increasing where Corona Virus has infected 18,496 people (towards 20,000 people infected) with a death toll of 1,221 people, leading to 1,400 people killed , (Fatality Rate of 6.60%).

On the other hand, the strengthening of commodity prices such as: Gold + 0.81%, Coal + 0.46%, CPO + 1.46%, Nickel + 1.71% & Lead + 0.72% has the potential to encourage the strengthening of commodity-based shares in trading this Wednesday.

Knowing that IHSG has the potential to be driven by profit taking, amid foreign investors who continue to record Net Sell where YTD (as of May 19, 2020) reaches Rp -27.69 trillion and valuations there are still quite many interesting stocks to buy, we recommend very selective if investors want to do BOW or Swing Trade then they can focus on shares from the Bank, Infrastructure, Consumer, CPO, Chicken Feed, Construction, Heavy Equipment and Property sectors in trading this Wednesday.


B. INDONESIA CORPORATE NEWS
1. PT Bank Maybank Indonesia (BNII).
During the first quarter of 2020, the company managed to achieve a net profit of Rp 538.2 billion with a growth of 29.7% (yoy), driven by an increase in non-interest income and sustainable strategic cost management. The company`s non-interest income grew 16.0% (yoy) to Rp 597.6 billion. Global Market Fee, bancassurance, investment, and electronic network transaction fees (e-channel) are the backbone. Although credit disbursement has declined, the company can still increase its net interest margin (NIM) by 14 bps (yoy) to 4.96% in March 2020. While the decline in credit has also contributed to the increase in non-performing loans (NPLs) to 3.6% (gross ), and 2.2% (net). While the gross impaired loan ratio also increased to 5.04% due to the implementation of the Statement of Financial Accounting Standards (PSAK) 71. As for the CAR the company is increasingly thickening to 20.6% with a total capital of Rp 25.9 trillion.

2. PT Fast Food Indonesia (FAST)
The company estimates that its revenue will decrease by 25% - 50% from 2019 due to the closure of 115 of the company`s outlets for approximately three months, as a consequence of the implementation of the PSBB to prevent the spread of COVID-19. The company said that net profit for the first quarter of 2020 will also be under 25 percent to 50 percent compared to the first quarter of 2019.

3. PT Graha Layar Prima (BLTZ)
Throughout 2019 the company recorded a net profit growth of 136.62% to Rp 83.34 billion compared to the previous year`s realization of Rp 35.22 billion. The net profit growth was driven from an increase in revenue of 19.49% to Rp 1.41 trillion. Meanwhile, revenues in 2018 amounted to Rp 1.18 trillion.


C. MARKET STATISTICS
*DJIA -390 -1.59% 24206*
*NASDAQ -49.72 -0.54% 9185*
*GOLD +14 +0.81% 1748.10*
*OIL -0.38 -1.16% 32.36*
*COAL (Juky/Newcastle) +0.25 +0.46% 54.85*
*NICKEL +210 +1.71% 12470*
*TIN +110 +0.72% 15387.5*
*CPO (Jun`20) +32 +1.46% 2218*
*EIDO -0.18 -1.11% 16.04*
US 10yr -0.052 -6.99% 0.6920
INDO 10yr -0.137 -1.72% 7.808
INDO CDS (5yr) ......% 195.994
*TLK 43.18 (3190)*
IDR (Spot) 14,770
IDR (Bloomberg, 20/05/20/Fut, 04.50) 14,770

*IDX Range : 4,509 - 4,589*
*USD/IDR Range: 14,705 - 14,840*


D. STOCK WATCHLIST
BBRI, TOWR, INDF, AALI, CPIN, WIKA, BBNI, UNTR, PTPP, CTRA.


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