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Indonesia Market Today - 8 July 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (08/07/2020). After 2 days the DJIA rose by +551.86 points (+ 2.14%), finally falling also by -1.51%, driven by the fall of Boeing-4.8% and the increase in the number of victims infected by Corvid19 in the US, potentially becoming a negative sentiment in trading this Wednesday in the midst of achieving the highest number of victims who were infected and died due to Corvid19, where on Tuesday the number of victims infected with Corvid19 broke the new record at only 1,2,268 people * so far Corvid19 victims have reached 66,226 (estimated to 100,000 infected) so far on Tuesday as many as +68 people so that the death toll so far has reached 3,309 people, leading to 4,000 people killed in the near future, (Fatality Rate of 5.00%).

On the other hand, rising prices for some commodities such as: Coal + 0.88%, Gold + 0.71% & Nickel + 0.02% are the upward drivers for stocks below these commodities and if combined with rising EIDO + 0.32% then it has the potential to be a catalyst for today`s trading .

Knowing the quite diverse sentiments driving the CSPI in trading Wednesday amid valuations 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, Rerail, Telecommunications, Basic Industries, CPO sectors, Consumer Metal and Gold in trading this Wednesday.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Waskita Karya (WSKT).

Pefindo downgrades WSKT bonds to BBB+. The WSKT bond downgrade was caused by high financial burden and weak debt ratio and company profitability. At present, WSKT has a bond debt of Rp2.5 trillion which will mature in October 2020.

 

2. PT Siloam International Hospitals (SILO)

The company allocated capex of around Rp 300-400 billion in 2020 which will be to build 2-3 new hospitals and procure health facilities for the handling of Covid-19 patients. In the first semester of 2020, the company has operated Siloam Mampang, Jakarta. Then, the company is preparing to open hospitals in Ambon and Maluku in the second semester.

 

3. PT Nippon Indosari Corpindo (ROTI)

The company projects a capital expenditure target in 2020 of Rp 400 billion. As of the 1/2020 quarter the capex that had been used was recorded at Rp 115.3 billion or equivalent to 28.8% absorption from this year`s target of Rp 400 billion. The Company currently operates 14 factories with a distribution of 13 factories strategically located in Indonesia and 1 plant in the Philippines. To anticipate the potential growth of the bread business in the country the Company is building 2 new factories with locations in Pekanbaru and Banjarmasin which are expected to start operating by the end of 2020.

 

4. PT Batavia Prosperindo Trans (BTPR)

The company posted revenue of Rp 41.69 billion, up slightly by 2.43%, from the same period in 2019 amounting to Rp 40.70 billion. This revenue was largely contributed by operating leases valued at Rp 38.97 billion and driver services totaling Rp 826.10 million. From the logistics side, the company earned an income of Rp 5.11 billion from PT Tiki Jalur Nugraha Ekakurir. Until the end of quarter 1/2020, the company posted BPTR profit for the current year of Rp 2.11 billion, down 39.19% from the same period in 2019 of Rp 3.47 billion. On the other hand, BPTR set a revenue target of Rp. 184.41 billion by the end of 2020 or increased by around 13.42% from the acquisition in 2019 of Rp. 162.59 billion.

 

 

C. MARKET STATISTICS

DJIA -396.85 -1.51% 25890
NASDAQ -89.76 -0.86% 10343
*GOLD +12.8 +0.71% 1807.70*
OIL -0.18 -0.44% 40.45
*COAL (Aug/Newcastle) +0.50 +0.88% 57.40*
*NICKEL +2.5 +0.02% 13397.5*
TIN -105 -0.61% 16977.5
CPO (Aug`20) -18 -0.74% 2396*
*EIDO +0.06 +0.32% 18.92*
US 10yr -0.043 -6.23% 0.641
INDO 10yr +0.088 +1.22% 7.283
*INDO CDS (5yr) +0.877 +0.732% 120.67*
*TLK 44.18 (3190) vs 3120 (TLKM)*
IDR (Spot) 14,440
IDR (Bloomberg, 08/07/20/Fut, 04.30) 14,440

*IDX Range : 4,937 - 5,020*
*USD/IDR Range: 14,380 - 14,510*

 

 

D. STOCK WATCHLIST

BJBR, ERAA, TKIM, ACES, TLKM, BBCA, AALI, ISAT, ICBP, MDKA.

 

 

 

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