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Indonesia Market Today - 8 June 2020

Monday (08/06/2020). After a week ago the JCI strengthened quite sharply by + 4.91% accompanied by Foreign Buyers` Net Buy of IDR 3.16 trillion, beginning this week, Monday, there is a big chance that the JCI will continue the strengthening trend as DJIA increased by + 3.15% due to the good Job Level data well above economists` forecasts and a + 2.58% EIDO strengthening amid the continued increase in the number of victims infected and killed by Corvid19, especially if PSBB is relaxed, where Corona Virus for 3 days (Friday to Sunday) has infected about +2,368 people so far This casualty was infected by Corvid19, reaching around 31,186 people (estimated to reach 35,000 people infected) with an additional death toll for 3 days as many as +130 people so that the death toll so far reached 1,851 people to 2,000 people killed in the near future, (Fatality Rate of 5, 90%).

Furthermore, rising commodity prices such as: Oil + 4.41%, Coal + 1.44%, Tin + 2.52%, Nickel + 0.96% and CPO + 1.23% have the potential to be catalysts driving the JCI strengthening and commodity-based shares in this Monday`s trading.

Knowing that IHSG has the opportunity to continue its strengthening trend, amid foreign investors continuing to record Net Buy and valuation there are still quite a lot of very attractive shares to buy, we recommend being very selective if investors want to BUY or Swing Trade then focus on stocks from the Retail, Pajan sectors Chickens, Property, Infrastructure, Tin Metals, Banks and Automotive in trading this Monday.

 

Deficit widened, the government plans to issue net SBN of Rp 1,487.6 trillion in 2020.

In Presidential Regulation (Perpres) No. 54/2020, the Government has set a budget deficit of 5.07% of GDP. However, along with the increasing need for funds to fight the Covid-19 pandemic, this year`s deficit is projected to widen to a level of 6.34% of GDP. One source of funding for the 2020 APBN is the issuance of Government Securities (SBN). For this reason, throughout the year, the government plans to issue a net SBN of IDR 1,487.6 trillion and a gross SBN of IDR 1,533.1 trillion. 

 

Corona hit, general insurance premiums fell 4.75% in April 2020.

Based on OJK data as of April 2020, premium income collected by general insurance is Rp. 25.69 trillion. This value decreased by 4.75% yoy compared to April 2019 with a value of Rp26.97 trillion. Whereas in March 2020, general insurance premium revenue still grew 3.22% yoy to Rp 20.17 trillion. Although it is still far compared to the achievement in December 2019, which grew 14.62% yoy to Rp 80.12 trillion.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Diamond Food Indonesia (DMND)

First quarter profit of 2020 Ice Cream and Chocolate Hershey`s producers decreased 5.12% to IDR65.97 billion compared to the same period in 2019 of IDR69.53 billion. Meanwhile, the company`s revenue in the first quarter of 2020 rose 6.71% to Rp1.73 trillion compared to the same period in 2019 of Rp1.62 trillion.

 

2. PT Wijaya Karya Beton (WTON)

The company recorded a net profit of Rp 72.66 billion in the first quarter of 2020, up 2.64% compared to the same period last year of Rp 70.79 billion. Meanwhile, the company`s revenue until the end of the 1st quarter of 2011 was recorded at Rp 1.16 trillion, down 10.07% compared to the same period in 2019 of Rp 1.29 trillion. In detail, the net sales of the concrete segment sustained a large portion of its tepay revenue by as much as Rp 873.94 billion. Net sales from the quarry segment contributed Rp 16.34 billion, and service sales were recorded at Rp 276.06 billion.

 

3. PT Indonesia Tobacco (ITIC)

In the first quarter of 2020, the company posted a profit of Rp1.78 billion, up sharply + 242.4% from before experiencing a loss of Rp1.25 billion in the same period in 2019. Meanwhile, until the end of the quarter 1/2020 the company`s sales rose 17.50% to IDR44.91 billion from IDR38.22 billion in 2019.

 

4. PT Citra Marga Nusaphala Persada (CMNP)

The company will issue new shares in the context of HMETD alias rights issue, which will be requested the approval of shareholders on July 14, 2020. The company will issue new shares of 1.81 billion shares. Not only that, CMNP will also release 1.81 series I warrants. Shareholders who do not exercise their rights to buy new shares in LPO II will have a maximum 33.33% ownership stake. Whereas shareholders who do not carry out series I warrants share ownership will be diluted by 25%.

 

 

C. MARKET STATISTICS

*DJIA +829.1 +3.15% 27110*
NASDAQ +198.2 +2.06% 9814
*GOLD -38.40 2.22% 1689*
*OIL +1.65 +4.41% 37.33*
COAL (July/Newcastle) +0.80 +1.44% 56.20
*NICKEL +122.5 +0.96% 1227.50*
*TIN +405 +2.52% 16455*
*CPO (Jul`20) +29 +1.23% 2390*
*EIDO +0.49 +2.58% 19.51*
US 10yr +0.0840 +10.24% 0.9040
INDO 10yr +0.0393 +0.53% 7.4023
*INDO CDS (5yr) -5.739 -4.39% 124.984*
TLK 46.18b(3205)
IDR (Spot) 13,877.5
IDR (Bloomberg, 06/06/20/Fut, 09.15) 13,877.5

*IDX Range : 4,918 - 5,019*
*USD/IDR Range: 13,810 - 13,940*

 

 

 

D. STOCK WATCHLIST

MAPI, JPFA, PWON, PGAS, TINS, CTRA, PTPP, BBTN, ASII, SMRA.

 


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