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Indonesia Market Today - 11 July 2020

A. INDONESIA MORNING MARKET REVIEW

Friday (10/07/2020). The shift of investor focus as the release of financial statements which will soon begin where it is estimated that the issuer`s earnings on average will fall 40% amid the rise in casualties due to Corvid19 in the US is a negative factor investors take profit-taking actions so that DJIA falls by -1.39% and when combined with EIDO decrease by -1.50% then has the potential to become a negative sentiment for this Friday`s trade amid the achievement of the highest record number of new victims who were infected and killed by Corvid19, where on Thursday the number of victims infected with Corvid19 broke the new record reaching +2,657 people * so far Corvid19 was infected by 70,736 people (estimated to reach 100,000 people infected) with an additional death toll on Thursday as many as +58 people so that the death toll has so far reached 3,417 people, leading to 4,000 people killed in the near future, (Fatality Rate of 4.83%).

Furthermore, negative sentiment came from falling prices of several commodities such as: Oil -3.20%, Coal -0.91%, Gold -0.57%, Nickel -2.06% & CPO -0.04% so that it could potentially be a pull down for stocks below those commodities.

Knowing that IHSG is estimated to have the chance to go back down * in trading this Friday amid valuations that many stocks are very attractive to buy, we recommend being very selective if investors want to do BOW or Swing Trade so they can focus on stocks from the Construction, Property, Pharmacy, Chemical, Retail sectors and smoking in trade this Friday.

 

Not Conveying the First Quarter of 2020, IDX Provides Sanctions to 90 Issuers.

The Indonesia Stock Exchange gave a warning in the form of sanction of Warning Letter 1 (SP1) to 90 issuers whose shares were listed on the IDX, due to the delay in submitting financial statements for the first quarter of 2020 which had a maximum reporting limit on Tuesday, June 30, 2020. Some issuers were late in submitting reports the financials are: * ABBA, ASRI, BEKS, DPUM, ECII, ENVY, INAF, MASA, MEDC, MDRN, MRAT, MYRX, PURE, RIMO, VIVA, WOWS *.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Waskita Beton Precast (WSBP)

The company closes two concrete processing plants (Precast) and combines closed plant resources to the nearest processing plant where the closure is in the framework of the Merecast of the Precast Plant namely the Palembang Plant (South Sumatra) and the capacity combined to the Gasing Plant (South Sumatra) and the Legundi Plant (Java East) is closed and its capacity
combined to the Sidoarjo Plant (East Java), Klaten (Central Java) & Bojonegara, (Banten). Furthermore, projects that were initially supported by the Palembang Plant will be supported by the Gasing Plant and Projects which were initially supported by the Legundi Plant will be supported by the Sidoarjo, Klaten & Bojonegara Plants.

 

2. PT Charoen Pokphand Indonesia (CPIN).

The company is exploring loans of up to US $ 307.9 million in USD and IDR denominations. In detail, the loan in rupiah is planned to be as much as Rp 3 trillion or equivalent to US $ 207.9 million, while the syndicated portion in US dollars is targeted at US $ 100 million. Citi and DBS Bank acted as mandated lead arrangers and bookrunners (MLAB) which handled the search for the syndicated loan.

 

3. PT Transcoal Pacific (TCPI)

The implementation of a number of the company`s business expansion agenda this year was hampered by the Covid-19 pandemic. So the company shifted its business agenda to next year. The company also postponed the use of capex allocation of US $ 50 million. The impact is the company estimates a decline in revenue of 13% -15% yoy.

 

4. PT Batavia Prosperindo Trans (BPTR)

Until the end of the quarter 1/2020, the Company posted revenue of Rp 41.69 billion, up 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. While until the end of the first quarter of 2012 the company posted current year profit of Rp 2.11 billion, down 39.19% from the previous year in 2019 which was Rp 3.47 billion.

 


C. MARKET STATISTICS

DJIA -361.1 -1.39% 25706
*NASDAQ +55.25 +0.53% 10547*
GOLD -10.4 -0.57% 1807.60
OIL -1.31 -3.20% 39.57
COAL (Aug/Newcastle) -0.50 -0.91% 54.55
NICKEL -277.5 -2.06% 13202.50
*TIN +182.5 +1.07% 17265*
CPO (Aug`20) -1 -0.04% 2437
EIDO -0.29 -1.50% 19.07
US 10yr -0.0480 -7.35% 0.6050
INDO 10yr -0.0281 -0.38% 7.3303
INDO CDS (5yr) +0.034 +0.028% 123.023
*TLK 42.58 (3065) vs 3110 (TLKM)*
IDR (Spot) 14,395
IDR (Bloomberg, 10/07/20/Fut, 04.40) 14,395

*IDX Range : 5,007 - 5,091*
*USD/IDR Range: 14,330 - 14,460*

 

D. STOCK WATCHLIST
PTBA, MDKA, WIKA, CTRA, KAEF, ITMG, PEHA, BRPT, ACES, WIIM*.

 

 

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