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Indonesia Market Today - 6 July 2020

A. INDONESIA MORNING MARKET REVIEW

Monday (06/07/2020). After over the past week JCI rose + 1.42% but accompanied by Foreign Investor Net Sell of Rp-1.59 trillion, at the beginning of this week there is a chance that JCI will continue to strengthen along with the estimated decline in 7DRR by Bank Indonesia and at the same time Bank Indonesia said several initial indicators the economy has not shown an indication that Indonesia will enter a recession amid the highest number of victims who have been infected and killed by Corvid19, where in 3 days (Friday to Sunday) the number of victims infected with Corvid19 on a record breaking day has only reached +4,355 so far Corvid19 was infected reaching 63,749 people (estimated to reach 100,000 people infected) with an additional death toll for 3 days +184 people so far the death toll has reached 3,171 people, leading to 4,000 people killed in the near future, (Fatality Rate of 4.97%).

Furthermore, rising commodity prices such as: Nickel & Tin by + 0.31% & + 0.18%, respectively, have the potential to be a strong sentiment for stocks below those commodities in trading this Monday.

Knowing that there are quite a lot of positive sentiments driving the CSPI to strengthen in trading this Monday 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 Bank, Chicken Feed, Infrastructure sector , Consumer, Cigarette, Chemical, Cement and Telecommunications in this Monday`s trade.

 

BI Opens Space to Lower Reference Rates.

Deputy Governor of Bank Indonesia (BI) said it did not rule out the possibility of lowering the benchmark interest rate again. This is inseparable from efforts to maintain the pace of the domestic economy amid the Covid 19. pandemic.

 

BI: Economic Indicators Improved, RI Will Not Recession in the Near future.

BI deputy governor said there were initial indicators that showed Indonesia would not fall into recession in the near future. The first indicator is seen from the volatility index that measures uncertainty is improving, although there is still a visible spread of Covid-19 in large countries. The VIX index improved to level 34, although this level was no better than the condition before Covid-19 at level 18. The next indicator was the inflow of foreign capital (capital inflow) on the money market after a massive withdrawal took place. Recorded in the transaction data for 22-25 June 2020, the flow of foreign capital into the SBN market was Rp. 4.92 trillion. But there was still a sell off of Rp 1.52 trillion in the stock market in the same period. Then, the opening of trade in China helped increase the volume of trade rose in May 2020. Furthermore, there was an increase in loading and unloading of imported vessels at ports compared to the first quarter of 2020.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Multistrada Arah Sarana (MASA)

The company posted a decline in sales of 34.04% to US $ 59.80 million in the first quarter of 2020, compared to the same period in 2019 of US $ 90.67 million. The decline in income was due to a 37.12% decline in exports to US $ 40.84 million, compared to the first quarter of 2019 valued at US $ 64.97 million. Likewise, domestic sales fell 26.24% to US $ 18.95 million. The decline in revenue affected the weakening of the company`s current period profit reaching 34.65% to US $ 1.37 million in the first quarter of 2020, compared to the first quarter of 2019 of US $ 2.13 million.

 

2. PT Taksi Express (TAXI)

The company said that as of March 31, 2020, it had short-term financial obligations of Rp681.9 billion. Most of the debt obligations are bonds payable of Rp549.1 billion. Furthermore, the unpaid interest debt of Rp90 billion refers to the results of bond restructuring, Rp5.8 billion of tax debt and short-term debt to third parties of Rp37 billion. In an effort to continue its sustainable business, the company pursues a number of strategies. First, to continue the company`s debt bond reduction program by selling non-core and non-productive assets. Second, continue the cost efficiency program and strict budget policy. Third, continue to focus on improving the performance of Express Transindo through increased productivity and utility of the fleet and drivers. Fourth, to maintain consumer comfort, the company will continue to conduct training programs for drivers to improve service and cleanliness of the fleet.

 

 

C. MARKET STATISTICS

DJIA Closed 25827
NASDAQ Closed 10207
GOLD -2.7 -0.15% 1787.30
OIL -0.33 -0.81% 40.32
COAL (July/Newcastle) -0.15 -0.29% 52.45
*NICKEL +40 +0.31% 12970*
*TIN +30 +0.18% 16890*
CPO (Aug`20) -2 -0.08% 2390*
EIDO Closed 18.50
US 10yr Closed 0.669*
INDO 10yr +0.086 +1.19% 7.325
*INDO CDS (5yr) -2.832 -2.28% 121.189*
TLK 44.96 (3265) vs 3120 (TLKM)
IDR (Spot) 14,522.5
IDR (Bloomberg, 04/07/20/Fut, 08.50) 14,522.5

*IDX Range : 4,934 - 5,017*
*USD/IDR Range: 14,445 - 14,580*

 

 

D. STOCK WATCHLIST

BJBR, CPIN, TOWR, INDF, HMSP, BRPT, TBIG, JPFA, ISAT, SMGR.

 

 

 

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