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Indonesia Market Today - 22 July 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (21/07/2020). The impetus for the strengthening of blue chips on Wall Street such as: Coca Cola + 2%, Chevron + 7% & Exxon + 5% as the impact of the strong earnings hassle from the initial estimate makes DJIA rise by + 0.60% and when combined with EIDO strengthening by + 2.20% has the potential to become a catalyst * JCI`s driving force to regain strength * in trading this Wednesday amid the achievement of the highest number of returning victims who were infected and killed as a result of Corvid19, where the number of victims infected with Corvid19 on Tuesday reached +1655 people so that so far the victims infected with Corvid19 have reached 89,869 people (estimated to 100,000 people infected) with an additional death toll on Monday as many as +81 people so far the death toll has reached 4,320 people, to 5,000 people died in the near future, (Fatality Rate of 4.81%)*.

Furthermore, rising commodity prices such as: Oil + 1.07%, Gold + 1.33%, Nickel + 2.05% & Lead + 1.15% have the potential to push up commodity-based stocks in trading this Wednesday.

Knowing that the IHSG has the opportunity to strengthen again in Wednesday trading amid valuations that 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 Automotive, Bank, Retail, Metal, Cement, and Gold sectors, Telko Infrastructure, Pharmaceuticals and Nickel Metals in trading Wednesday.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Industri Jamu Dan Farmasi (SIDO)
Until the first semester of 2020, the company recorded a net profit of Rp413.79 billion, up 10.58% compared to the same period in 2019 of Rp374.11 billion. Meanwhile, total sales in the first half of 2020 amounted to Rp1.45 trillion, up 2.83% compared to the end of June 2019 which was recorded at Rp1.41 trillion.

 

2. PT Waskita Karya (WSKT)

Pefindo downgraded the debt rating of Waskita Toll Road (WTR) to BBB from BBB +. There are three factors that make the WTR ranking cut. According to Pefindo, the downgrade was due to the company`s capital structure that relies on short and medium term debt, revenues that are too dependent on the toll road divestment business, and the risk of developing new toll roads. This debt rating can still be lowered again if WSTR fails to divest toll roads that can threaten the company`s capital structure and cash flow. This rating can also be lowered if the company fails to complete the construction of the toll road according to the specified deadline.

 

3. PT Jasa Marga (JSMR)

The Company through the PT Cinere Serpong Jaya (CSJ) Business Group that manages the Serpong-Cinere Toll Road continues to make efforts to complete the toll road construction on time. The Serpong-Cinere Toll Road which is part of the Jakarta Outer Ring Road (JORR) 2 will be connected to the Kunciran-Serpong Toll Road from the West managed by PT Marga Trans Nusantara (also a JSMR business group). The Toll Road which has a length of 10.14 KM consists of 2 sections, namely: Section 1 Serpong-Pamulang with a length of 6.59 KM & Section 2 Pamulang-Cinere with a length of 3.55 KM. Until the beginning of July 2020, the total progress of land acquisition has reached 91.23% and construction progress has reached 82.69%.

 

 

C. MARKET STATISTICS

*DJIA +159.5 +0.60% 26840*
NASDAQ -86.7 -0.81% 10680
*GOLD +24.20 +1.33% 1843.2*
*OIL +1.07 +2.63% 41.76*
COAL (Aug/Newcastle) -0.15 -0.28% 53.50
*NICKEL +270 +2.05% 13460*
*TIN +200 +1.15% 17560*
CPO (Aug`20) +1 +0.04% 2755
*EIDO +0.41 +2.20% 19.01*
US 10yr -0.0130 -2.10% 0.6070
INDO 10yr -0.0353 -0.49% 7.2359
INDO CDS (5yr) -5.835 -4.629% 120,225
*TLK 41.54 (3061) vs 3060 (TLKM)*
IDR (Spot) 14,740
IDR (Bloomberg, 22/07/20/Fut, 04.35) 14,740

*IDX Range : 5,071 - 5,155*
*USD/IDR Range: 14,670 - 14,810*

 

 

D. STOCK WATCHLIST

ASII, BBRI, ACES, BBNI, KAEF, MDKA, INTP, TBIG, KLBF, INCO.

 

 

 


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