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Indonesia Market Today - 2 June 2020

A. INDONESIA MORNING MARKET REVIEW

Tuesday (02/06/2020). The myth of "Sell in May and Go Away" was broken in 2020 because during May the JCI actually rose quite sharply + 4.51% amid Foreign Investors posted a Net Sell of Rp -7.12 trillion (you can imagine how much JCI could rise if Foreign Investors posted a Net Buy?) And at the beginning of June, this Tuesday IHSG has the chance to RISE driven by a DJIA strengthening sentiment of + 0.29% and a sharp strengthening of EIDO by + 5.80% amid the continuing increase in the number of victims infected and killed, especially if the PSBB is relaxed, where Virus Corona for 3 days (Saturday to Monday) l infected +2,402 Indonesians to 26,940 people (estimated to reach 30,000 people infected) with the death toll for 3 days increasing +146 people to 1,641 people killed and to 1,800 people killed, (Fatality Rate of 6.10%).

In addition, rising commodity prices such as: Oil + 5.71%, Gold + 1.07%, Tin + 1.27%, Nickel + 2.80% and CPO + 0.43% have the potential to be catalysts driving up the JCI and commodity-based stocks in trading this Tuesday.

Knowing that IHSG has the opportunity to continue strengthening in early June to 4,800 level, amid foreign investors who continue to book Net Sell where YTD (as of May 29, 2020) reaches Rp -28.19 trillion, making valuations there are still quite many interesting stocks to buy, We recommend being very selective if investors want to do BUY or Swing Trade so they can focus on stocks from the Chicken Feed, Automotive, Bank, Pharmaceutical, Gold Metal, Telko, Retail, Infrastructure and Property sectors in this Tuesday trade.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Toba Bara Sejahtra (TOBA)

The company posted a revenue increase of 53.21% to US $ 167 million in the first quarter of 2020, compared to the same period in the previous year of US $ 109 million. This revenue was supported by coal sales to third parties abroad rose 3.61% to US $ 86 million. But overall, sales to third parties decreased by 1.14% to US $ 87 million. Then the most significant increase occurred in the construction revenue segment reaching 286.86% to US $ 78.34 million. The increase affected the company`s net profit jump of 218.06% in the first quarter of 2012 to US $ 19.37 million.

 

2. PT NFC Indonesia (NFCX)

Until the end of 2019, the company`s net income grew by 147.2% YoY to Rp6.2 trillion, mainly driven by the performance of the sustainable digital product aggregator segment, which grew 148.1% YoY to Rp6.1 trillion in FY19. The increase was in accordance with an increase in the number of members by 248.0% YoY (25.9K members in FY18 vs 99.5K members in FY19). In addition, top-line growth was driven by the contribution of revenue from the digital cloud advertising segment which grew by 75.0% YoY to Rp55.8 billion in FY19. The increase in revenue had a positive impact on the net profit attributable to grow 125.6% YoY to Rp35.6 billion.

 

3. PT Distribution Voucher Nusantara (DIVA)

The company`s sales rose 138.7% YoY, from Rp1.5 trillion in 2018 to Rp3.6 trillion in 2019, supported by the growth of SME partners by 36.2% YoY, from 18.2 thousand partners in 2018 to 24.8 thousand partners in 2019. Furthermore, during 2019, the Company sought to increase the average ticket size, increasing by 75.3% YoY from Rp81.6 million per partner in 2018 to Rp143.1 per partner in 2019. The impact of the increase in revenue boosted its net profit (attributable to the owners of the Company) rose sharply by 850.6% YoY from Rp9.9 billion in 2018 to Rp93.6 billion in 2019.

 

4. PT M Cash Integration (MCAS)

The company`s revenue until the end of 2019 increased by 74.4% YoY, from Rp6.4 trillion in 2018 to Rp11.1 trillion in 2019, largely driven by the number of distribution points which grew 110% YoY to 160,201 in FY19 from 75,910 in FY18. Meanwhile, until the end of 2019, the net profit attributable to the company fell by 33.1% YoY to Rp152.3 billion. 

 

 

C. MARKET STATISTICS

(Data May 29 till June 1, 2020)

*DJIA +75 +0.29% 25475*
*NASDAQ +184 +1.96% 9532*
*GOLD +18.6 +1.07% 1750.80*
*OIL +1.92 +5.71% 35.56*
*COAL (July/Newcastle) -0.40 +0.71% 56.30*
*NICKEL +342.5 +2.80% 12582.50*
*TIN +197.5 +1.27% 15705*
*CPO (Jul`20) +10 +0.43% 2316*
*EIDO +0.98 +5.80% 17.88*
US 10yr -0.043 -6.10% 0.6620
INDO 10yr -0.1487 -1.95% 7.4793
*INDO CDS (5yr) -5.093 -3.14% 157.123*
*TLK 43.20 (3156)*
IDR (Spot) 14,610
IDR (Bloomberg, 30/05/20/Fut, 09.15) 14,610

*IDX Range : 4,735 - 4,834*
*USD/IDR Range: 14,570 - 14,710*

 

 

D. STOCK WATCHLIST

CPIN, ASII, BMRI, KLBF, MDKA, ACES, BBNI, EXCL, SSIA, TOWR, CTRA.

 

 

 

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