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Indonesia Market Today - 14 July 2020

A. INDONESIA MORNING MARKET REVIEW

Tuesday (14/07/2020). After DJIA had strengthened 500 points but due to profit taking in technology stocks such as: Netflix, Microsoft, Amazon, Facebook and due to increased fears of the Corvid19 attack returned following the closure of cinemas, museums and restaurants in California, making DJIA only closed slightly higher + 0.04% amid Achieving the highest number of victims who were infected and killed as a result of Corvid19, where on Monday the number of victims infected with Corvid19 on the day broke the new record at +1,282 so that so far the Corvid19 victims were infected reaching 76,981 people (an estimate of 100,000 affected) with an additional death toll on the day Monday as many as +50 people so far the death toll has reached 3,656 people, leading to 4,000 people killed in the near future, (Fatality Rate of 4.75%)*.On the other hand, positive sentiment comes from rising prices of some commodities such as: Gold + 0.16%, Coal + 0.93%, Nickel + 1.25%, Tin + 1.05% & CPO + 0.73% so that it has the potential to be a positive sentiment driving up stocks below those commodities in trading this Tuesday.

Knowing that IHSG is estimated to have the opportunity to continue limited strengthening * in trading this Tuesday amid valuations that many stocks are very interesting to buy, we recommend being very selective if investors want to do BUY or Swing Trade so they can focus on stocks from the Coal, Retail, Bank, Cigarettes, TI, Heavy Allat, Chicken Feed and Telecommunications in Tuesday`s trade.

 

WHO warning: Corona pandemic will get worse and worse.

WHO Director General Tedros Adhanom Ghebreyesus in a virtual briefing from the WHO headquarters in Geneva said "If the basics (prevention) are not followed, the only way this pandemic will continue (continues), it will get worse and worse".

 


B. INDONESIA CORPORATE NEWS

1. PT Adi Sarana Armada (ASSA)

The Company intends to carry out additional capital by providing Pre-emptive Rights (HMETD) alias rights issue with a maximum of 1,132,000,000 shares with a nominal value of Rp100. The company will ask for shareholders` approval in the Extraordinary General Meeting of Shareholders on August 19, 2020 and the implementation will not last more than 12 months. Shareholders who do not exercise their rights to carry out the conversion into new shares in LPO I will be diluted to a maximum of 25%.

 

2. PT Bank Maybank Indonesia (BNII)

The company recognizes the impact of the co-19 pandemic on the company`s business continuity such as operational restrictions to predict a 25% decline in revenue and a 25% net profit in the period ended June 30, 2020 compared to June 30, 2019.

 

3. PT PP Properti (PPRO)

The impact of the covid pandemic 19 is the operational stops at hotels in Jakarta, Bandung, Surabaya, Pekanbaru and Balikpapan, operational stops of malls located in Bekasi and Surabaya, as well as apartments which have partially stopped operational constructions, for marketing consumer gathering apartments, exhibitions and open houses. So that the company predicts a decline in revenue of up to 25% and net profit by 50% in the period ending as of May 31, 2020 compared to May 31, 2019. Furthermore, the number of employees affected by the 19th pandemic is 49 people, 20 employees laid off and 29 people the employee is not renewed by the contract. The co-19 pandemic also had an impact on fulfilling principal obligations and debt interest.

 

4. PT Indonesia Vehicle Terminal (IPCC)

Overall, the total cargo of vehicles served in June 2020 decreased by -51.81%, where in June 2020, 10,019 units were handled from an average of 20,789 units of cargo handling with 335 units of heavy equipment, from an average of 854 units and general cargo as much as 1,501 M3 from an average of 3,869 M3.

 

5. PT Pudjiadi Prestige (PUDP)

The impact of the covid-19 pandemic on the sustainability of the company`s business in the hospitality sector, such as a total 3-month shutdown for predictions of a revenue decline of 75%. Furthermore, to save operating costs the company laid off 100 employees and had an impact on fulfilling the principal obligations and debt interest of Rp14.92 billion, where the company had proposed a relaxation of the company`s loans to the lending Bank, the company restricted operational activities in several business units to reduce Fixed costs and Salary Deductions for Directors, Commissioners and Employees.

 

 

C. MARKET STATISTICS

*DJIA +10.50 +0.04% 26085*
NASDAQ -226.60 -2.13% 10390
*GOLD +2.9 +0.16% 1804.70*
OIL -1.03 -2.53% 39.59
*COAL (Aug/Newcastle) +0.50 +0.93% 54.50*
*NICKEL +170 +1.25% 13720*
*TIN +180 +1.05% 17402.50*
*CPO (Aug`20) +18 +0.73% 2474*
*EIDO +0.01 +0.04% 19.02*
US 10yr -0.015 -2.31% 0.618
INDO 10yr +0.092 +1.30% 7.181
*INDO CDS (5yr) -1.563 -1.243% 124.16*
*TLK 42.20 (3044) vs 3090 (TLKM)*
IDR (Spot) 14,425
IDR (Bloomberg, 14/07/20/Fut, 04.55) 14,425

*IDX Range : 5,015 - 6,000*
*USD/IDR Range: 14,350 - 14,490*

 

 

D. STOCK WATCHLIST

PTBA, ERAA, ACES, BBNI, GGRM, MTDL, UNTR, CPIN, UNVR, EXCL.

 

 


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