Indonesia Market Today - 26 May 2020
A. INDONESIA MORNING MARKET REVIEW
Tuesday (26/05/2020). During the Indonesian Stock Exchange holiday celebrating Eid, there are some developments that need to be considered including: the Dow Jones index rose + 1.06%, while the Stock Index in Asia on average experienced a fall such as: Hangseng fell -5.89%, Shanghai fell -2.52% & Singapore fell -3.18% except the Tokyo Index which rose by + 1.51% combined with a decline in EIDO of -1.87% and the fall of Gold -1.18% & Nickel -1.64% has the potential to be a negative sentiment for trading this Tuesday amid the continuing increase in the number of victims infected and killed, there is no sign of a decline due to the increasing indifference of the Indonesian people to Corvid19, due to Corona Virus in Indonesia more and more during the holidays where * Corona Virus has infected 22,750 people (over 5 days increased by 4,254 people infected with Corvid-19 and an estimate of 25,000 people infected) with a death toll of 1,391 people, (Over 5 days 170 people died and 1,500 people died, (6.11% Fatality Rate).
On the other hand, the strengthening of commodity prices such as: Oil + 4.21%, Coal + 3.1%, CPO + 0.99% & Tin + 0.13% has the potential to encourage the strengthening of commodity-based shares in trading this Tuesday.
Knowing that IHSG has the potential to be affected by continued profit taking, amid foreign investors who continue to post Net Sell where YTD (as of May 20, 2020) reaches Rp -27.61 trillion and valuations there are still quite a lot of 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, Chemical, IT, Infrastructure, CPO, Construction and Basic Industries sectors in this Tuesday trade.
PSBB Can Be Extended If Corona Numbers Continue to Rise
DKI Jakarta Governor, Anies Baswedan, said PSBB (Lockdown) in the capital region could be extended again after it ended on 4 June. The potential for the extension of the PSBB, said Anies, would occur if the positive corona virus (Covid-19) in the Republic of Indonesia`s capital region continued to increase.
B. INDONESIA CORPORATE NEWS
1. PT Indofood CBP Sukses Makmur (ICBP)
The Company recorded a consolidated net sales growth of 7% to Rp12.01 trillion from Rp11.26 trillion in the same period in 2019. Meanwhile, until the quarter 1/2020, profit for the current period attributable to owners of the parent entity increased by around 48% to Rp1 , 98 trillion from Rp1.34 trillion in the quarter 1/2019 and net profit margin reached 16.5%.
2. PT Indofood CBP Sukses Markmur (ICBP)
The company will buy 70.83 million shares owned by Pinehill Corpora or equivalent to 51% of the total shares issued by Pinehill Company Limited, and all shares owned by Steele Lake are 68.05 million shares or equal to 49% of total shares. The purchase price of all shares was agreed at US $ 2.99 billion or equivalent to Rp.44.33 trillion (assuming an exchange rate of Rp.14,785 per US dollar). This amount will be paid for shares sold by Pinehill Company amounting to US $ 1.53 billion or equivalent to Rp22.61 trillion, and shares sold by Steele Lake for US $ 1.47 billion or equivalent to Rp21.72 trillion. Source of transaction financing comes from the company`s cash of US $ 300 million, the rest comes from loan facilities from banking institutions.
3. PT Indofood Sukses Makmur (INDF)
As of the 1/2020 quarter, the company posted a 1% increase in consolidated net sales to IDR19.30 trillion from IDR19.17 trillion in 2019. Meanwhile, until the 1st quarter of2020, the current period profit attributable to owners of the parent entity grew 4 % to Rp1.40 trillion from Rp1.35 trillion, and net profit margin rose to 7.3% from 7.0%.
4. PT Gajah Tunggal (GJTL)
The company`s sales reached IDR15.94 trillion as of December 31, 2019, an increase compared to IDR15.35 trillion sales in the same period in 2018. Meanwhile, until the end of 2019, profit attributable to the owners of the parent entity was IDR269.11 billion after recording a loss of IDR74 , 55 billion in 2018.
5. PT Medco Energi International (MEDC)
The company posted revenues of US $ 1.44 billion as of the 31 December 2019 period, an increase compared to the same period in 2018 of US $ 1.22 billion. Meanwhile, until the end of 2019, the loss attributable to the owners of the parent entity increased to US $ 34.04 million compared to the same period in 2018 amounting to a loss of US $ 17.22 million.
6. PT Ginting Jaya Energi (WOWS)
The company claimed that the condition of its business continuity was disrupted by Covid-19. One of the effects of this pandemic is the partial shutdown of operations with an estimated more than three months. This is related to the efficiency carried out by PT. Pertamina has 30% of its operations. Thus, this has an impact on the negotiation of the ongoing contract value. In addition, all new contracts were also concluded by PT. Pertamina and for the time being there is no contract extension that is due. Accordingly, the estimated decrease in total (consolidated) revenue for the period ended March 31, 2020 is less than 25%. While the estimated decrease in net profit (loss) (consolidated) for the period ended March 31, 2020 is estimated to be more than 75%.
C. MARKET STATISTICS
*(Data from May 20 - 25, 2020)*
*DJIA +258 +1.06% 24465*
*NASDAQ +139 +1.51% 9324*
*GOLD -20.7 -1.18% 1727.4*
*OIL +1.36 +4.21% 33.72*
*COAL (July/Newcastle) +1.7 +3.1% 56.55*
*NICKEL -205 -1.64% 12265*
*TIN +20 +0.13% 15407.5*
*CPO (Jun`20) +22 +0.99% 2240*
*EIDO -0.3 -1.87% 15.74*
US 10yr -0.035 -5.06% 0.6570
INDO 10yr +0.035 +0.45% 7.843
INDO CDS (5yr) -21.696 -11% 175.503
*TLK 41.20 (3030)*
IDR (Spot) 14,710
IDR (Bloomberg, 21/05/20/Fut, 05.50) 14,710
*IDX Range : 4,499 - 4,579*
*USD/IDR Range: 14,660 - 14,820*
D. STOCK WATCHLIST
BBRI, BRPT, MTDL, TOWR, BBNI, AALI, BMRI, ADHI, INTP, MDKA.
GFS ASIA TEAM
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