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Indonesia Market Today - 1 July 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (01/07/2020). DJIA closed higher again + 0.85% driven by rising share prices of major issuers such as Fedex which rose 9% due to encouraging earnings and revenue data at the end of the trade quarter 2/2020, so that throughout the 2/2020 quarter DJIA rose by 17.8% (the best quarterly achievement since 1987 amid the Corvid19 pandemic attack and lockdown) has the potential to be a positive sentiment for trafficking beginning in the quarter 3/2020 amid the achievement of the highest number of returning victims who were infected and killed as a result of Corvid19, where the number of victims infected by Corvid19 on Tuesday increased to +1.2293 people * so far Corvid19 infected reached 56,385 people (estimated to reach 100,000 people infected) with an additional death toll on Tuesday as many as +71 people so that the death toll so far has reached 2,876 people to 3,000 people killed in the near future, (Fatality Rate of 5.10%).

On the other hand, rising prices for some commodities such as: Oil + 0.48%, Gold + 0.78% & Nickel + 0.12% have the potential * to push up stocks below these commodities * in trading this Wednesday.

Knowing that there are quite a lot of positive sentiments driving the JCI then there is a chance * JCI will strengthen again * in trading this Wednesday amid valuations that many stocks are very attractive to buy, we recommend being very selective if investors want to buy or swing trade then they can focus on stocks from the Gold Metal sector , Retail, Pharmacy, Cement, Chicken Feed and Banks in trading this Wednesday.

 

Deficit widens, debt ratio this year is estimated to reach 37.6% of GDP.

The government officially widens the 2020 state budget deficit to 6.34% of GDP) or this deficit is equivalent to Rp 1,039.2 trillion. The widening of the deficit is in line with the increasing budget handling Corona impact in the country. The government in this case has also increased the pandemic handling budget to Rp 695.20 trillion. The subsequent impact is also reflected in the debt to GDP ratio which increased quite high. Whereas in 2019, the government recorded a debt to GDP ratio of 30% but later, with the outlook based on Perpres 72/2020 the government saw the debt ratio to increase quite sharply to 37 6% of GDP.

 

 

B. INDONESIA MORNING MARKET REVIEW

1. PT Telekomunikasi Indonesia (TLKM).

The company recorded profit attributable to the parent entity of IDR 5.86 trillion in the first quarter of 2020, down 5.81% compared to the same period in 2019 of IDR 6.22 trillion. Meanwhile, the company`s revenue until the end of the first quarter of 2012 amounted to Rp34.19 trillion, down 1.85% compared to the same period in 2019 of Rp34.84 trillion.

 

2. PT Ace Hardware (ACES)

Until the end of the quarter 1/2020 the company posted revenues of Rp 1.96 trillion, up 4.25% compared to the same period in 2019 of Rp 1.88 trillion. Details, home improvement products are the main contributors to revenue by contributing Rp 1.02 trillion. Then followed by lifestyle products amounting to Rp 840.68 billion. Then, game products contributed revenue of Rp. 62.24 billion. Meanwhile, consignment sales contributed Rp 38.56 billion. The increase in revenue also increased the company`s bottom line (net profit) by 3.9% to Rp 245.68 billion compared to the same period in 2019 of Rp 236.45 billion.

 

3. PT Agung Podomoro Land (APLN)

In the first quarter of 2020, the company posted revenue of Rp 1.32 trillion, up 75.3 percent compared to Rp 754 billion in the first quarter of 2019. However, at the end of quarter 1/2020 the company recorded a net loss for the current period of Rp 325.7 billion mainly due to a net foreign exchange loss of Rp 377.8 billion in which the foreign exchange loss data was obtained from a foreign exchange loss of Rp 1.05 trillion deducted by derivative financial instrument profit of IDR 668.6 billion.

 

4. PT MAP Adiperkasa Active (MAPA)

The company posted a decline in net income of 3.4% for the first quarter of 2020 to Rp 1.46 trillion compared to Rp 1.52 trillion recorded in the same period in 2019. While the company`s net profit fell by 49.0% or equivalent to around Rp 7 3 billion, making it Rp 72.0 billion from what should have been Rp 79.3 billion in the first quarter of 2020 as a result of Covid-19 and the adoption of the PSAK 73 Lease accounting standard (IFRS 16 Leases).

 

5. PT Prodia Widyahusada (PRDA)

The company scored a net income of Rp 391.37 billion and a net profit of Rp 34.78 billion in the first quarter of 2020. Net income was supported by revenue contributions from each customer segment. Individual customer segments and doctor referrals contributed 66.3% to the Company`s revenue. Meanwhile, the contribution of the third party reference segment and corporate clients amounted to 33.7% to the Company`s revenue. Esoteric test revenue also grew to Rp 75.55 billion along with the increasing number of requests for esoteric tests in the first quarter of 2020 to 136,084 tests. In the first quarter of 2020, Prodia cooperated with Siaga Raya Hospital in the management of health laboratory services. The company also launched an immunohistochemical examination (CPI) service for lymphoma cancer.

 

6. PT Ultrajaya Milk Industry (ULTJ)

In the first quarter of 2020, the company posted a profit of Rp435.76 billion, up 45.48% from a profit of Rp299.95 billion in the first quarter of 2019. Meanwhile, until the end of the quarter 1/2020 the company posted sales of Rp1.61 trillion, up 13.02% of sales of Rp1.43 trillion in the same period in 2019.

 

7. PT Indonesia Pondasi Raya (IDPR)

Until the first quarter of the year, the Company recorded a loss for the year attributable to the owners of the parent entity of Rp53.75 billion, where in the same period in 2019 the company posted a profit of Rp2.12 billion. Meanwhile, until the end of the first quarter of 2012 the company`s revenue fell 18.34% to Rp205.25 billion from Rp251.35 billion in the same period in 2019.

 

 

C. MARKET STATISTICS

*DJIA +217.08 +0.85% 22812*
*NASDAQ +184.6 +1.87% 10058*
*GOLD +13.9 +0.78% 1798.10*
*OIL +0.19 +0.48% 39.82*
*COAL (July/Newcastle) -0.55 -1.04% 52.15*
*NICKEL +15 +0.12% 12797.5*
TIN -52.50 -0.86% 16735*
CPO (Aug`20) -26 -1.09% 2361
EIDO -0.33 -1.80% 18.00*
US 10yr Unch 0.6360
INDO 10yr +0.0175 +0.24% 7.4136
INDO CDS (5yr) +1.326 +0.989% 135.441
TLK 43.76 (3121) vs 3050 (TLKM)
IDR (Spot) 14,265
IDR (Bloomberg, 01/07/20/Fut, 04.55) 14,265

*IDX Range : 4,869 - 4,952*
*USD/IDR Range: 14,190 - 14,330*

 

 

D. STOCK WATCHLIST

ERAA, ACES, KLBF, AKRA, SMGR, CPIN, PTBA, MDKA, BBNI, ASII

 

 

 

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