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Indonesia Market Today - 3 July 2020

A. INDONESIA MORNING MARKET REVIEW

Friday (03/07/2020). The combination of US Non-farm Payroll data realization which increased by 4.8 million people, higher than the consensus of 3 million and unexpectedly the US Unemployment Rate fell to 11.1% below the initial projection of 12.3% to drive the DJIA rise by + 0.36% and the strengthening of EIDO + 1.43% has the potential to be a positive catalyst for * CSPI to strengthen * in trading on this Friday amid the achievement of the highest number of returning victims who were infected and killed by Corvid19, where the number of victims who contracted Corvid19 on Thursday broke the record highs reaching +1,624 people so far the victims have been infected Corvid19 reached 59,394 people (estimated 100,000 affected) with Thursday`s death toll increasing by +53 so that the death toll has so far reached 2,987 people, leading to 4,000 dead in the near future, (Fatality Rate of 5.03%).

Furthermore, rising commodity prices such as: Oil, Gold, Coal, Nickel, Tin and CPO were + 1.43%, + 0.43%, + 1.94%, + 0.56%, + 0.42% & + 1.18% potentially becoming reinforcing sentiments for shares under the commodity in trading this Friday.

Knowing that there are quite a lot of positive sentiments driving the JCI to strengthen in trading this Friday amid valuations that many stocks are very attractive to buy, we recommend being very selective if investors want to do BUY or Swing Trade so they can focus on stocks from the Consumer, FMCG, Construction, Property, Banks and Metals in trading this Friday.

 

National Economic Recovery Program Budget Swells.

The government has made additional costs to Rp.695.2 trillion from Rp677.2 trillion. This cost swelling was followed by a widening of the budget deficit which was projected to be 6.34% or widened to Rp1,039.2 trillion of GDP. This swelling occurs because the portion of shopping is getting bigger and the revenue is depressed. This is caused by the corona virus pandemic.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Asia Sejahtera Mina (AGAR)

The company posted a net profit of IDR1.84 billion in the first quarter of 2020, an increase of 103.08% from a net profit of IDR907.86 million in the same period in 2019. Meanwhile, until the end of the quarter 1/2020, the company`s sales were IDR38.47 billion or down 43.14% from sales of Rp67.66 billion in the same period in 2019.

 

2. PT PP (PTPP)

The company targets revenues in 2020 of around Rp20 trillion. While until May the company pocketed new contracts of around Rp7.5 trillion. With the addition of the new contract, the company now has a deal faced or order book of Rp. 60 trillion. The company update said that the target for new contracts this year was initially set at Rp40.36 trillion. However, the results of the Covid-19 impact stress test study, the company estimates the contract will only reach Rp23.57 trillion.

 

3. PT Campina Ice Cream Industry (CAMP)

The company estimates sales of Rp 945 billion throughout 2020, where the target is 8.16% smaller than the realization of sales in 2919 which reached Rp 1.03 trillion.

 

4. PT Trinitan Metals and Minerals (PURE)

The company recorded a loss of Rp27.36 billion in 2019, inversely proportional to a profit of Rp27.27 billion in 2018. Meanwhile, the company`s sales during 2019 amounted to Rp452.12 billion, down 22.64% from sales in 2018 of Rp583 , 78 billion.

 

5. PT Buana Lintas Lautan (BULL)

The company has just received the 7th Long Range 2 (LR2) tanker this year from a total of 8 tankers purchased this year. The tanker purchased weighed 109,647 DWT, with a length of 245 meters. As an illustration, the tanker is bigger than a 56-story building. Thus, the company now has a fleet of 33 ships with a total capacity of 2.3 million DWT.

 

 

C. MARKET STATISTICS

*DJIA +92.39 +0.36% 25827*
*NASDAQ +53 +0.52% 10207*
*GOLD +7.7 +0.43% 1787*
*OIL +0.57 +1.43% 40.29*
*COAL (July/Newcastle) +1 +1.94% 52.60*
*NICKEL +72.5 +0.56% 12930*
*TIN +70 +0.42% 16860*
CPO (Aug`20) +28 +1.18% 2390*
*EIDO +0.26 +1.43% 18.50*
US 10yr -0.013 -1.86% 0.669*
INDO 10yr +0.084 +1.16% 7.317
*INDO CDS (5yr) -7.259 -5.529% 124.021*
TLK 44.96 (3230) vs 3140 (TLKM)
IDR (Spot) 14,377.5
IDR (Bloomberg, 02/07/20/Fut, 04.55) 14,377.5

*IDX Range : 4,916 - 5,000*
*USD/IDR Range: 14,320 - 14,455*

 

 

D. STOCK WATCHLIST

ICBP, UNVR, PTPP, SMRA, LSIP, CTRA, WIKA, BBNI, ADHI, INCO.

 

 

 


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