Indonesia Market Today - 28 May 2020
A. INDONESIA MORNING MARKET REVIEW
Thursday (28/05/2020). Referring to the re-strengthening of DJIA by + 2.21% combined with the strengthening of EIDO + 0.18% as well as the strengthening of CPO commodity prices by + 4.06% has the potential to push back the strengthening of the JCI in trading on this Thursday amid the increasing number of victims who are infected and killed, due to the increasing lack of - Indonesian people care about Corvid19, where Corona virus has infected 23,851 people (estimated to reach 25,000 people infected) with 1,473 people killed, (to 1,600 people died, (6.17% Fatality Rate).
On the other hand, falling commodity prices such as: Oil -6.21%, Coal -1.06%, Gold -0.18%, Tin -0.26% & Nickel -1.62% have the potential to encourage profit taking of these commodity-based shares in trading this Thursday.
Knowing that IHSG has the opportunity to continue its strengthening, amid foreign investors who continue to record Net Sell where YTD (as of May 27, 2020) reaches Rp -28.81 trillion making valuations there are still quite many interesting stocks to buy, we recommend very selective if investors want to do BOW or Swing Trade then can focus on shares from the Bank, Coal, Property, Basic Industry, Construction, Telko, CPO, Retail and Infrastructure sectors in this Thursday trade.
B. INDONESIA CORPORATE NEWS
1. PT Bank Central Asia (BBCA)
In the 1/2020 quarter the company`s consolidated net profit was IDR6.6 trillion, up 8.6% YoY. As of March 2020, the Bank`s loan portfolio grew 12.3% YoY to Rp612.2 trillion. The company also recorded a high operating income growth of 17.3% YoY to Rp19.6 trillion, supported by solid credit growth and CASA performance. Furthermore, this growth was mainly supported by corporate loans which increased 25.4% YoY to Rp260.4 trillion. Meanwhile, commercial and SME loans rose 5.0% YoY to Rp191.2 trillion. Consumer loans grew moderately by 3% YoY to Rp154.9 trillion in line with the slow growth trend in home and automotive purchases. In the consumer credit segment, mortgages grew 7.0% to Rp92.5 trillion; KKB fell 2.1% YoY to Rp47.2 trillion; and outstanding credit cards decreased 3.7% YoY to Rp12.4 trillion. In the same period, Sharia financing increased 19.8% YoY to Rp5.7 trillion. From the perspective of Sustainable Finance, the portfolio of financing for environmental-based business activities reached IDR 118.6 trillion at the end of March 2020, growing 17% YoY. As a result of Corvid19, until mid-May 2020, the company is in the process of restructuring loans of around Rp 65 trillion to Rp 82.6 trillion, equivalent to 10% - 14% of the total loan portfolio, originating from around 72,000 debtors or 10% of the total debtors of all segments . Furthermore, the company sees a potential increase in the number of credit restructuring in the next few months to around 20-30% of the total loans originating from 250,000 - 300,000 debtors. On the other hand, as of March 2020, the company`s CASA fund grew 17.3% YoY, reaching Rp568.5 trillion and contributed 76.7% of total third party funds. On the other hand, first quarter net profit boosted the company`s capital position with a CAR of 22.5%. The NPL ratio is maintained at the level of 1.6% at the end of March 2020.
2. PT Wismilak Inti Makmur (WIIM)
The company posted a net sale of Rp374.89 billion up to March 31, 2020 increased + 16.53% compared to the same period in 2019 of Rp312.93 billion. Meanwhile, until the end of quarter 1/2020 profit for the current period attributable to owners of the parent entity was IDR14.28 billion, up + 170.96% compared to the same period in 2019 of IDR5.27 billion.
3. PT Tira Austenite (TIRA)
As a result of Corvid19, until the end of the quarter 1/2020 the company estimates a decline in revenue ranging from 25% to 50%, while the decline in profit could reach 75% compared to the same period in 2019.
4. PT FKS Multi Agro (FISH)
The company posted an increase in profit for the year attributable to owners of the parent entity of 169.68% to US $ 9.52 million as of the first quarter of 2020, compared to the same period last year of US $ 3.53 million. The increase was supported by revenue growth of around 2.91% to US $ 259.20 million until the first quarter of 2020, compared to the same period the previous year of US $ 251.85 million.
5. PT Adi Sarana Armada (ASSA)
The company estimates that net profit in the first quarter of 2020 will drop by less than 25% YoY and the company`s revenue as of March 31, 2020 is predicted to decrease by less than 25% due to the disrupted condition of the Covid-19 pandemic.
6. PT Ramayana Lestari Sentosa (RALS)
The impact of Corvid19, the period of January to the present May 27, 2020, the company has laid off 421 employees. Furthermore, operational restrictions in almost all department store businesses occurred in the period from April to May 2020, the impact of the operational restrictions will affect the company`s consolidated revenue contribution by 25% - 50% compared to 2019. While the decline in profit could reach 75% compared to 2018.
C. MARKET STATISTICS
*DJIA +553.1 +2.21% 25548*
*NASDAQ +72.14 +0.77% 9412*
*GOLD -3 -0.18% 1709.75*
*OIL -2.12 -6.21% 32.02*
*COAL (July/Newcastle) -0.60 -1.06% 56.20*
*NICKEL -200 -1.62% 12145*
*TIN -40 -0.26% 15365*
*CPO (Jul`20) +89 +4.06% 2278*
*EIDO +0.03 +0.18% 16.52*
US 10yr -0.0180 -2.58% 0.6800
INDO 10yr -0.3249 -4.16% 7.4733
*INDO CDS (5yr) -10.848 -6.33% 162.001*
*TLK 42.62 (3135)*
IDR (Spot) 14,710
IDR (Bloomberg, 28/05/20/Fut, 04.45) 14,710
*IDX Range : 4,694 - 4,674*
*USD/IDR Range: 14,640 - 14,780*
D. STOCK WATCHLIST
BBRI, PTBA, PWON, SMGR, WIKA, EXCL, BSDE, AALI, ERAA, TOWR.
GFS ASIA TEAM
- just now