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Indonesia Market Today - 27 May 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (27/05/2020). The combination of strengthening DJIA by + 2.17%, as a response to the reopening of the US economy and the positive development of the discovery of the Corvid19 vaccine, and EIDO + 4.76% as well as strengthening some commodity prices such as: Crude Oil + 1.24%, Coal + 0.44% & Nickel + 0.65% potential encouraging the strengthening of the JCI in trading on Wednesday amid growing numbers of infected and killed victims, due to the increasing indifference of the Indonesian people to Corvid19, where Corona Virus has infected 23,165 people (estimated to reach 25,000 people infected) with the death toll 1,418 people, (to 1,500 people killed, (Fatality Rate of 6.12%).

On the other hand, falling commodity prices such as: Gold -1.35% & CPO -1.53% have the potential to encourage profit taking of commodity-based shares in trading this Wednesday.

Knowing that IHSG has the opportunity to continue its strengthening, amid foreign investors who continue to record Net Sell where YTD (as of May 26, 2020) reaches Rp -27.83 trillion making valuations there are still quite many interesting stocks to buy, we recommend very selective if investors want to do BUY or Swing Trade, then they can focus on shares from the Automotive, Bank, Infrastructure, Coal, Chemical, Basic Industries, IT and Construction sectors in trading this Wednesday.

 

B. INDONESIA CORPORATE NEWS

1. PT Telekomunikasi Indonesia (TLKM)

The company posted revenue of IDR 135.57 trillion as of December 31, 2019, an increase of + 3.66% compared to the same period in 2018 of IDR 130.78 trillion. Meanwhile, until the end of 2010 the profit for the year attributable to the owners of the parent entity amounted to Rp18.66 trillion, an increase of + 3.49% compared to the same period in 2018 of Rp18.03 trillion. Telkomsel and IndiHome Digital Business grew significantly and became the main contributors to the growth of the Company.

In the Mobile segment, Telkom, through its subsidiary Telkomsel, still establishes itself as the operator with the largest customer base in Indonesia, with 171.1 million customers with 110.3 million mobile data users. The growing need for data services amid the massive digital lifestyle has pushed data traffic to grow by 53.6% to 6,558 petabytes.

 

2. PT Matahari Putra Prima (MPPA)

The impact of the co-19 epidemic pandemic that hit the company, that revenue in the first quarter of 2020 has the potential to decrease by 25% from the same period in 2019.

 

3. PT Sentul City (BKSL)

The company estimates that net profit in the first quarter of 2020 will decrease by 75% compared to the first quarter of 2019. This is due to the impact of the outbreak of the COVID-19 pandemic. As for the stopped operational activities, among others, PT GGEA - termination of Neo + & Taman Budaya Hotel, PT SC - Alana Hotel restriction located in Sentul City, PT JSG - termination of event organizer, Restriction on property sales in SC, BJA, GI, SPP , and most recently Restricted property sales on NCD locations in Serpong. On the other hand, the company has short-term obligations such as MTN Principal Payments, obligations to banks and principal bonds totaling Rp1,006 trillion.

 

4. PT Indocement Tunggal Prakasa (INTP)

With an estimated decline in total consolidated revenue for the period March 31, 2020 compared to the same period in 2019 around 25%, because of the 10 existing factories in Citeureup, Bogor. the company only operates 1 to 3 factories.

 

5. PT Tower Bersama Infrastructure (TBIG)

The company has absorbed capital expenditure (capex) of Rp 801.24 billion in the first quarter of 2020 from a total capex of Rp 1 trillion-Rp 2 trillion. The capex is used to add investment property, usufruct assets and fixed assets. The company posted revenue of Rp 1.26 trillion in 1/2020 quarter or grew 11.57% compared to the same period in 2019 of Rp 1.13 trillion. In the quarter 1/2020 the company managed to add 1,402 tenants. Until the end of the year, the company is targeting to add 3,000 tenants consisting of 1,000 new towers and 2,000 collocations.

 

C. MARKET STATISTICS
*DJIA +529 +2.17% 24995*
*NASDAQ +15.63 +0.17% 9340*
*GOLD -23.3 -1.35% 1704.10*
*OIL +0.42 +1.24% 34.14*
*COAL (July/Newcastle) +0.25 +0.44% 56.80*
*NICKEL +80 +0.65% 12345*
*TIN -2.5 -0.02% 15405*
*CPO (Jul`20) -34 -1.53% 2192*
*EIDO +0.75 +4.76% 16.49*
US 10yr +0.0410 +6.24% 0.6980
INDO 10yr -0.0406 -0.52% 7.8022
*INDO CDS (5yr) -2.553 -1.455% 172.95*
*TLK 43.28 (3193)*
IDR (Spot) 14,755
IDR (Bloomberg, 27/05/20/Fut, 04.35) 14,755

*IDX Range : 4,581 - 4,661*
*USD/IDR Range: 14,690 - 14,820*

 

D. STOCK WATCHLIST

ASII, BBCA, PGAS, PTBA, JSMR, BRPT, MTDL, INTP, BBRI, ADHI.

 

 

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