Indonesia Market Today - 15 July 2020
A. INDONESIA MORNING MARKET REVIEW
Wednesday (15/07/2020). The combination of DJIA`s sharp increase in the last week (due to the encouragement of strengthening energy and industrial sector shares) which is + 2.13% and EIDO increase of + 1.42% is a positive sentiment for * IHSG which is expected to continue strengthening and is in the level of 5,100 * in trading This Wednesday amid the achievement of the highest number of victims who were infected and killed by Corvid19, where on Tuesday the number of victims infected with Corvid19 on a record breaking day reached a new high of +1,591 so that so far the Corvid19 victims have reached 78,572 (estimated to 100,000 infected) Monday`s death toll was +54 people so that the death toll so far has reached 3,710 people, leading to 4,000 people killed in the near future, (Fatality Rate of 4.72%) *.
Furthermore, the positive catalyst came from the rising prices of several commodities such as: Oil + 2.15%, Coal + 1.65%, Gold + 0.45% & CPO + 2.22% so that it could potentially be a positive sentiment driving the rise of shares under these commodities in trading this Wednesday.
Knowing that IHSG has the opportunity to continue strengthening in Wednesday trading 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 Consumer, Chicken Feed, CPO, Pharmacy, Retail sectors. , Automotive, Bank and Coal in Wednesday trade.
B. INDONESIA CORPORATE NEWS
1. PT Garuda Indonesia (GIAA)
The company is in financial difficulties. The company cash flow is only USD14.5 million. Meanwhile, the company was faced with bank loans and huge business loans of USD2.2 billion (equivalent to Rp.18.2 trillion). The debt breakdown of USD2.2 billion consists of USD905 million operational debt, USD668 million short-term loans and USD645 million long-term loans. Further explained, from the USD645 million, there was a USD500 million sukuk loan, which was successfully negotiated and extended to June 2023.
2. PT Wahana Ottomitra Multiartha (WOMF).
The company estimates net profit and revenue in the first half of 2020 to fall by around 25% -50% and 25%, respectively. The company must temporarily close 40 offices other than branch offices until 31 July 2020. This operational restriction lasts for around 3 months, and contributes to revenue of 25%.
3. PT Diamond Food Indonesia (DMND)
The company estimates that there will be a decrease in revenue and net profit of 25%, the company also laid off 677 employees. The co-19 pandemic also had an impact on meeting the principal and interest obligations of Rp75 billion in debt.
4. PT J Resources Asia Pacific (PSAB)
The Company offers a Phase I 2020 Asia Pacific Sustainable Bond I J Bonds of 2020 amounting to a maximum of Rp 650 billion. The Phase I Bond Issuance is part of J Resources I Sustainable Bonds with a total issuance value of Rp 3 trillion. The Phase V Sustainable Bonds I consists of two series, namely Series A, Rp 220 billion with an interest rate of 9.25 percent per year, with a term of 370 days. Series B Rp 315 billion with an interest rate of 10.25 percent per year, with a term of 3 years.
C. MARKET STATISTICS
*DJIA +556.8 +2.13% 26642*
*NASDAQ +97.73 +0.94% 10488*
*GOLD +8.2 +0.45% 1812.90*
*OIL +0.85 +2.15% 40.44*
*COAL (Aug/Newcastle) +0.90 +1.65% 55.40*
NICKEL -125 -0.91% 13595
TIN -145 -0.83% 17257.50
*CPO (Aug`20) +55 +2.22% 2527*
*EIDO +0.27 +1.42% 19.29*
US 10yr -0.025 -3.91% 0.6150
INDO 10yr +0.0212 +0.29% 7.3139
INDO CDS (5yr) +2.926 +2.356% 127.086
*TLK 42.38 (3062) vs 3080 (TLKM)*
IDR (Spot) 14,450
IDR (Bloomberg, 15/07/20/Fut, 04.45) 14,450
*IDX Range : 5,030 - 5,114*
*USD/IDR Range: 14,370 - 14,510*
D. STOCK WATCHLIST
ICBP, CPIN, LSIP, KLBF, ACES, ASII, BBRI, KAEF, BMRI, PTBA.
GFS ASIA TEAM
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