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Indonesia Market Today - 16 July 2020

A. INDONESIA MORNING MARKET REVIEW

Thursday (16/07/2020). The combination of positive sentiment for the development of the corona virus vaccine (Covid-19), strong earnings of issuers such as Goldman Sachs and US President Donald Trump reportedly did not want to increase tension with China to become positive sentiment DJIA again strengthened by + 0.85%, making consecutive strengthening on the day for 4 days, and Bank Indonesia`s plan to reduce 25 bps 7DRR again this Thursday has the potential to be a catalyst driving the JCI to rebound this Thursday amid the highest number of victims re-infected and killed by Corvid19, where on Wednesday the number of victims infected with Corvid19 again broke new record highs reaching +1,522 So far the Corvid19 infectious death toll has reached 80,094 people (estimated to reach 100,000 people infected) with an additional death toll on Wednesday of +87 people so far the death toll has reached 3,797 people, leading to 4,000 people killed in the near future, (Fatality Rate by 4.74%).

Meanwhile, positive sentiment came from rising prices of several commodities such as: Oil + 1.38%, Coal + 0.18%, Tin + 0.22% & CPO + 1.79% so that it could potentially be a catalyst driving the rise in shares under these commodities in trading this Thursday.

Knowing that the IHSG has the opportunity to reverse or rebound in Thursday`s trade amid valuations that many stocks are very attractive to buy, we recommend being very selective if investors want to buy or swing trade, then they can focus on stocks from the Automotive, CPO, Retail, Property sectors, Coal, Hospital and Basic Industries in Thursday`s trade.

 

Finally, the automotive market began to roar in June 2020.

Car sales for the 1/2020 semester decreased 45.88% yoy to 260,933 units. In the same period last year, a total of 482,097 units of cars were still able to sell in the domestic market. Although it is still lower than the realization of sales in June 2019, it is already higher than the realization of national retail sales which reached 24,272 units in April 2020 and 17,083 units in May 2020.

 

Hotel occupancy rate in Bali is only 1%.

The Chairperson of the Indonesian Hotel and Restaurant Association (PHRI) explained that hotel occupancy rates in Indonesia were still very low, despite the relaxation. In fact, on Tuesday (14/7), the hotel occupancy rate in Bali was only 1%.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Adhi Karya (ADHI).

Until June 2020, the company recorded the acquisition of new contracts amounting to Rp3.7 trillion (excluding tax). The realization of the acquisition of new contracts in June 2020 was dominated by the Irrigation Network Regional Project in Kudus, Central Java (Rp161.5 billion). Meanwhile, the contribution per business line to the acquisition of new contracts in June 2020 covers the Construction & Energy business line by 90%, Property by 9% and the rest is other business lines. Whereas in the type of work, the acquisition of new contracts consists of Building projects by 33%, roads and bridges by 5%, and other Infrastructure projects such as the construction of dams, airports, railroads, and EPC projects by 62%.

 

2. PT PP (PTPP)

The Company signed the Mandalika Special Economic Zone Road Development Cooperation in which the road construction project worth Rp 900 billion is owned directly by ITDC where the financing uses the Pre-Financed Project scheme.

 

3. PT Citra Marga Nusaphala Persada (CMNP)

The company increased its authorized capital and limited offer II with pre-emptive rights (HMTED) alias rights issue of 1.81 billion shares, which was accompanied by the issuance of Series 1 Warrants.

 

4. PT Wijaya Karya (WIKA)

The company is currently working on a Mass Rapid Transit (MRT) transportation project in Taiwan. The project began in mid-2019 and is targeted for completion next year. The project is worked on by WIKA in collaboration with the largest contractor from Taiwan, RSEA Engineering Corporation. The inner ring road MRT line project is located in New Taipei City. The track, called the Sanying Line, runs along 14.3 KM and connects the Tucheng, Sanxia and Yingge areas to 13 stop stations.

 

 

C. MARKET STATISTICS

*DJIA +227.51 +0.85% 26870*
*NASDAQ +61.91 +0.59% 10550*
GOLD Unch 1812.90
*OIL +0.56 +1.38% 41.00*
*COAL (Aug/Newcastle) +0.10 +0.18% 55.50*
NICKEL -55 -0.91% 13595
*TIN +37.5 +0.22% 17295*
*CPO (Aug`20) +43 +1.69% 2582*
EIDO -0.17 -0.88% 19.12*
US 10yr +0.015 +2.44% 0.6300
INDO 10yr -0.0286 -0.39% 7.2853
INDO CDS (5yr) -2.548 -2.005% 124.538
*TLK 42.46 (3097) vs 3090 (TLKM)*
IDR (Spot) 14,587.5
IDR (Bloomberg, 16/07/20/Fut, 04.55) 14,587.5

*IDX Range : 5,028 - 5,112*
*USD/IDR Range: 14,520 - 14,650*

 

 

D. STOCK WATCHLIST

ICBP, CPIN, LSIP, KLBF, ACES, ASII, BBRI, KAEF, BMRI, PTBA.

 

 

 

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