Indonesia Market Today - 18 June 2020
A. INDONESIA MORNING MARKET REVIEW
Thursday (18/06/2020). The combination of DJIA`s fall of -0.65% (again due to concerns over Corvid19 and waning optimism of stimulus packages) and EIDO of -0.74% has the potential to be a positive sentiment and become an excuse for investors to make minor profit taking for this Thursday`s trade amid the highest number of returns victims who were infected and killed as a result of Corvid19, finally Indonesia can defeat Singapore and the highest in Southeast Asia the number of people infected, where on Wednesday the number of victims infected by Corvid19 remains high reaching +1,031 people * so far the victims of being infected with Corvid19 have reached around 41,431 people (estimated to 45,000 people infected) with Wednesday`s death toll of +45 more so that the death toll has so far reached 2,276 people to 2,500 dead in the near future, (Fatality Rate of 5.52%) *.
On the other hand, the condition of commodity prices is quite diverse where the price of Tin, Gold, CPO rose by + 0.89%, + 0.03% & + 0.20%, potentially pushing up shares under these commodities in Thursday`s trade.
Knowing that IHSG has the opportunity to be affected by minor profit taking *, amid valuations many stocks are very interesting to buy, we recommend being very selective if investors want to do BOW, * especially stocks that will distribute quite large dividends such as PTBA *, or Swing Trade then focus on shares from the Coal, CPO, Retail, Telko Infrastructure, Consumer, Construction, Property and Gold Metal sectors in trading this Thursday.
B. INDONESIA CORPORATE NEWS
1. PT Panin Dubai Syariah Bank (PNBS)
The Company will increase the capital with pre-emptive rights (PMHMETD) aka rights issue, by releasing 15,040,962,149 shares with a nominal amount of Rp100 per share. The company hopes to reap IDR.504 trillion from the corporate action. To that end, the company will hold an Extraordinary General Meeting of Shareholders (EGMS) on June 27, 2020, in order to obtain permission from the shareholders to carry out the corporate action.
2. PT Bank China Construction Bank Indonesia (MCOR)
The company will conduct LPO V to its shareholders in the framework of PHMETD alias rights issue. The Company offers 21,288,269,763 new shares in the name with a nominal value of Rp100 per share which is 56.14 percent of the total shares outstanding after LPO V. Each holder of 100 old shares of the company whose name is listed in the DPS of the company on June 26, 2020 is entitled to 128 Preemptive Rights in which 1 Preemptive Rights have the right to buy 1 new share at an exercise price of Rp150 per share. The amount of funds to be received by the company is Rp3,193,240,464,450.
3. PT Timah (TINS)
The company cut capital expenditure (capex) this year to Rp 1.5 trillion from the original plan of Rp 2.5 trillion. The company also cut operational costs (opex) by up to 30% to maintain cash flow liquidity during a pandemic. This year, the company targets sales of 55,000 metric tons, down from the realization of 2019 sales of 67,704 metric tons.
4. PT Chitose Internasional (CINT)
The company recognizes the impact of the co-19 pandemic on the company`s business operations to the principal debt obligations of Rp500 million. The company predicts that there will be a decrease in total revenue and profit until the period ended as of May 31, 2020 compared to May 31, 2019, respectively 25% to 50% of revenue and 25% of net profit.
5. PT Indo-Rama Synthetics (INDR)
The company recognizes the impact of the co-19 pandemic on the company`s business operations both in the country and abroad. The company predicts that there will be a decrease in total revenue and profits until the period ended as of May 31, 2020 compared to May 31, 2019 with 25% revenue and 75% profit respectively.
6. PT ABM Investama (ABMM)
ABMM`s subsidiary, PT Cipta Kridatama, obtained a new mining services contract of around Rp 348.68 billion. The contract signing took place June 15, 2020. In accordance with the agreement, Cipta Kridatama will handle overburden removal and heavy equipment rental services in order to achieve a target volume of around 12.6 million bcm.
C. MARKET STATISTICS
DJIA -170.37 -0.65% 26119*
*NASDAQ +14.67 +0.15% 9910*
*GOLD +0.5 +0.03% 1735.40*
OIL -0.23 -0.61% 37.70
COAL (July/Newcastle) -0.75 -1.42% 52.10
*NICKEL -192.5 -1.48% 12835*
TIN +150 +0.89% 16965
*CPO (Jul`20) +5 +0.20% 2460*
EIDO -0.14 -0.74% 18.75
US 10yr -0.0230 -3.04% 0.7330
INDO 10yr Unch 7.4413
*INDO CDS (5yr) -4.003 -3.21% 120.755*
TLK 45.60 (3210)
IDR (Spot) 14,088.5
IDR (Bloomberg, 18/06/20/Fut, 04.25) 14,088.5
*IDX Range : 4,953 - 5,037*
*USD/IDR Range: 14,010 - 14,140*
D. STOCK WATCHLIST
PTBA, AALI, MAPI, TOWR, INDF, LSIP, WTON, PWON, PTPP, ANTM.
GFS ASIA TEAM
- just now