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Indonesia Market Today - 7 July 2020

A. INDONESIA MORNING MARKET REVIEW

Tuesday (07/07/2020). Quite a lot of positive sentiments that are "milling" on the market today make * CSPI today is expected to continue strengthening again * it will even go back through the 5000 level, starting from the sharp increase of DJIA by + 1.78% and combined with the strengthening of EIDO by + 1.95% and Bank Indonesia`s estimate of a 7DRR reduction will again be a "terrible trio" for this Tuesday`s trade amid the highest number of returning victims who were infected and killed by Corvid19, where on Monday the number of victims infected with Corvid19 broke new record highs reaching +1,209 people * so far Corvid19 infectious victims reached 63,958 people (estimated to be 100,000 infected) with an additional death toll on Senon day of +70 people so far the death toll has reached 3,241 people, leading to 4,000 people killed in the near future, (Fatality Rate of 4.99%) *.

Furthermore, positive sentiment also came from rising commodity prices such as: Oil, Coal, Gold, Nickel & Lead (breaking through the highest price in the last 5 months) each strengthening by + 0.77%, + 1.79%, + 0.42%, + 3.28% & + 1.14% has the potential to be an upward catalyst for stocks under the commodity in trading this Tuesday.

Knowing that there are quite a lot of positive sentiments driving the * JCI to strengthen * in trading this Tuesday 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 Chicken Feed, Coal, Telecommunications sectors , Construction, Nickel Metal, Infrastructure, CPO and Banks in trading this Tuesday.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Medco Energi Internasional (MEDC)

The company set a production target of 100-105 thousand barrels of oil of equivalent per day (mboepd). The breakdown, as much as 67 mboepd is a gas production target while 33-38 mboepd is a target for crude oil production. The company hopes to maintain oil and gas unit costs so far this year at levels below US $ 10 per barrel of equivalent (boe).

 

2. PT Surya Semesta Internusa (SSIA)

Due to the impact of the Corvid pandemic19, the company estimates that its revenue will drop by around 13% YoY. In detail, in the industrial land leasing business line, SSIA only targets marketing sales for 8 ha-10 ha of land until the end of 2020. In May 2020, the company recorded sales of 2.9 ha of industrial land or equivalent to Rp56 billion. Until now the company has also received land requests for around 45 ha. During the pandemic, SSIA also continued to boost the development of industrial estate projects in Subang, by acquiring a total land area of 1,211 hectares in the first quarter of 2020. While industrial land in the Karawang area, currently occupies an occupancy of 87% of the total available land area of 160,255 m2. The company will also book sales of 80 hectares of real estate assets from phase 4 in Suryacipta City of Industry, Karawang in the upcoming quarter III-2020.

 

3. PT Martina Berto (MBTO).

Although affected by the pandemic, the company is optimistic that this year it can book profits with a target of increasing net sales to reach 4.92% or equivalent to Rp 564 billion.

 

4. PT Wijaya Karya Beton (WTON)

The company managed to book revenue of Rp 1.17 trillion in the first quarter of 2020, down 10% yoy. Even though revenue fell, by the end of March 1 2020, the company posted a net profit increase of Rp 73 billion, up 3% from Rp 71 billion in the first quarter of 2019.

 

5. PT Pan Brothers (PBRX).

Moodys again downgraded PBRX`s corporate family rating (CFR) * from B2 to B3. At the same time Moodys also downgraded PB International B.V.`s senior unsecured notes. which will mature in 2022, from B2 to B3. The downgrade to B3 reflects the continuing uncertainty related to PBRX refinancing of debts that are due. PBRX has a large amount of debt that will mature in the next 12-18 months. Two of them are revolving credit facilities worth US $ 138.5 million due in February 2021 and senior unsecured notes in the amount of US $ 171 million with maturities in January 2022.

 

 

C. MARKET STATISTICS

*DJIA +459.47 +1.78% 26287*

*NASDAQ +226.02 +2.21% 10433*
*GOLD +7.6 +0.42% 1794.90*
*OIL +0.31 +0.77% 40.63*
*COAL (Aug/Newcastle) +1 +1.79% 56.90*
*NICKEL +40 +0.31% 12970*
*TIN +192.5 +1.14% 17082.50*
*CPO (Aug`20) +47 +1.97% 2437*
*EIDO +0.36 +1.95% 18.86*
US 10yr +0.008 +1.22% 0.679*
INDO 10yr +0.089 +1.23% 7.336
*INDO CDS (5yr) -1.396 -1.152% 119.794*
TLK 44.60 (3231) vs 3050 (TLKM)
IDR (Spot) 14,490
IDR (Bloomberg, 07/07/20/Fut, 08.50) 14,490

*IDX Range : 4,940 - 5,023*
*USD/IDR Range: 14,410 - 14,545*

 

 

 

D. STOCK WATCHLIST

CPIN, PTBA, ISAT, PTPP, INCO, TOWR, JPFA, EXCL, LSIP, BBNI.

 

 

 

 

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