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Indonesia Market Today - 28 July 2020

A. INDONESIA MORNING MARKET REVIEW

Tuesday (28/07/2020). Supporting the strengthening of technology-based stocks and signals from the Fed Chairman that interest rates will stay near zero longer will be the driving factor for DJIA to strengthen by + 0.43% combined with the strengthening of EIDO by + 1.15% * potentially to be a catalyst for JCI to strengthen * in trading this Tuesday amid achieving the highest number of victims who were infected and killed by Corvid19, where * on Monday there were +1,525 people infected with Corvid * so far the Corvid19 victims have reached 100,303 people (successfully reaching 100,000 infected people making it the number 3 largest in Asia) with an additional death toll on Monday as many as +57 people so that the death toll so far has reached 4,838 people, leading to 4,000 people killed in the near future, (Fatality Rate of 4.82%) *.

Furthermore, rising prices for some commodities such as: Oil + 0.75%, Gold + 1.86%, Nickel + 1.25% & Lead + 2.26% * have the potential to drive up commodity-based stocks * in trading this Tuesday.

Knowing that IHSG has the opportunity to continue its strengthening * in trading this Tuesday 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 Metal, Cigarettes, Heavy Equipment, Banks, Basic Industry, Property, and Chicken Feed in Tuesday trade.

 

 

B. INDONESIA CORPORATE NEWS

1. PT MNC Kapital Indonesia (BCAP)

The company focuses on reaching the digital financial market. Director of MNC Kapital Wito Mailoa is optimistic that this strategy will make the company`s performance brilliant and at the same time meet customer needs. In 2020, the company will change its business model by focusing on the digital market to become the leader in integrated digital financial services in Indonesia. Furthermore, MNC Capital Director Jessica Tanoesoedibjo explained, on the Motion (Mobile Transaction Indonesia) platform, MNC Bank immediately launched a new mobile banking to realize the vision of branchless banks as well as to increase customer satisfaction. In the insurance business, the synergy between MNC Life and MNC Insurance increasingly maximizes protection for its users through a digital insurance application called Hario. Meanwhile, MNC Sekuritas through its digital and online trading platform, MNC Trade, immediately provides additional services as an online mutual fund selling agent (Aperd). Through MNC Teknologi Nusantara, the SPIN platform also continues to innovate. In addition to providing e-money services, e-wallet, and payment of basic necessities products such as credit, electricity and water; SPIN also allows its users to transfer funds digitally, to certain bank accounts and other e-wallets. MNC Kapital will soon have a peer-to-peer (P2P) lending platform as a channeling agent for MNC Bank, MNC Finance and MNC Leasing loans. In 2020, MNC Kapital acquired Flash Mobile which is a payment gateway and biller aggregator company.

 

2. PT Bank Central Asia (BBCA)

The company and its subsidiaries posted a net profit of Rp12.2 trillion in the first half of this year, down -5.43% compared to the same period last year which was Rp12.9 trillion. Although net profit fell, the profit before provision and tax grew positively because it was supported by a decrease in cost of funds (CoF) and a slowdown in the growth of operating expenses. The company also managed to record a high growth of third party funds in the first half of 2020, which increased by 13% (yoy) to Rp761.6 trillion. This achievement was supported by demand deposits and savings (CASA) which grew 12.8% (yoy) to reach Rp575.9 trillion and contributed 75.6% of total third party funds in June 2020. While for time deposits also grew 13.6 % (yoy) or Rp. 185.6 trillion with a healthy liquidity position of LDR of 73.3% so that it can anticipate various needs, especially during the pandemic. Then BBCA is also still able to maintain capital in a solid position with a capital adequacy ratio (CAR) at the level of 22.9% amid various challenges of the COVID-19 pandemic. The ratio of non-performing loans (NPL) was 2.1% compared to 1.4% in June 2019 and BBCA posted a return on assets (ROA) ratio of 3.1% and a return on equity (ROE) of 15.6% in the first half of 2020.

 

3. PT Suryamas Dutamakmur (SMDM)

Until the end of the quarter 2/2020, the company posted sales of Rp188.74 billion until the period 30 June 2020, down -32.92% compared to the same period in 2019 of Rp281.37 billion. Furthermore, until the end of the quarter 2/2020, the net loss attributable to the owners of the parent entity suffered IDR4.56 billion, or fell sharply -119.60% after reaching IDR23.27 billion net profit in 2019.

 

4. PT Bumi Resources (BUMI)

The Supreme Court (MA) has issued a permanent decision to * punish a fine * to PT Citra Prima Sejati (CPS) subsidiary of BUMI in the amount of Rp 10.33 Billion.

 

 

C. MARKET STATISTICS

*DJIA +114.88 +0.43% 26584*
*NASDAQ +173.09 +1.67% 10536*
*GOLD +35.3 +1.86% 1935.6!!*
*OIL +0.31 +0.75% 41.65*
COAL (Aug/Newcastle) -0.90 -1.69% 52.20
*NICKEL +170 +1.25% 13792.5*
*TIN +397.5 +2.26% 18002.50*
CPO (Aug`20) -65 -2.25% 2825
*EIDO +0.22 +1.15% 19.28*
US 10yr +0.002 +3.40% 0.6090
INDO 10yr -0.0019 -0.05% 7.1205
INDO CDS (5yr) -0.707 -0.594% 118.278
*TLK 41.66 (3030) vs 3040 (TLKM)*
IDR (Spot) 14,535
IDR (Bloomberg, 28/07/20/Fut, 08.15) 14,535

*IDX Range : 5,066 - 5,150*
*USD/IDR Range: 14,470 - 14,600*

 

 

D. STOCK WATCHLIST

MDKA, GGRM, UNTR, ANTM, BMRI, AKRA, SMRA, BBRI, ITMG, CPIN.

 

 

 

 

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