Indonesia Morning Market - 13 August 2020
A. INDONESIA MORNING MARKET REVIEW
Thursday (13/08/2020). Encouraged by rising technology and health-based stocks and expectations of the Covid19 vaccine discovery, DJIA strengthened by + 1.05% and if combined with the EIDO strengthening of + 2.25%, this is a positive sentiment driving the JCI to rise this Thursday but it is necessary * to be aware of profit taking on coal commodity-based stocks, Nickel and Tin * following the fall in commodity prices again last night amid the attainment of the highest number of victims infected and killed by Corvid19, where * on Wednesday there were +1,942 people infected with Corvid * so far the number of victims infected with Corvid19 reached 130,708 people (success far surpassed China, suspected to be the country of origin of the Corona Virus) with an additional death toll on Wednesday of +79 people so that so far the death toll has reached 5,903 people, leading to 6,000 deaths in the near future (Fatality Rate of 4.52%)*.
Son of Sinarmas Founder Sues Again for Inheritance of Rp737 T.
Freddy Widjaja, son of the late Eka Tjipta Widjaja founder of Sinarmas Group, has again registered the inheritance dispute lawsuit at the South Jakarta District Court. He registered Freddy`s lawsuit files on Tuesday (11/8/2020). The lawsuit over this inheritance right was directed against 6 parties, including 5 half-siblings, against the Sinar Mas Group company whose assets value reached Rp 737 trillion. The asset value is higher than the previous lawsuit on June 16, 2020, filed by Freddy, with a total asset value of a number of inheritances which is said to be Rp. 673 trillion.
B. INDONESIA CORPORATE NEWS
1. PT Summarecon Agung (SMRA)
The company cut its property unit sales target (marketing sales) from Rp 5.4 trillion to Rp 2.5 trillion this year. This was done in anticipation of a decline in people`s purchasing power due to the economic downturn after the Covid-19 pandemic. As for the first semester of 2020, Summarecon Agung posted pre-sales revenue for marketing sales of Rp1.1 trillion.
2. PT PP (PTPP)
The company held a groundbreaking ceremony for the construction of the Tamblang Dam project in Bali, last Wednesday. The Rp 769 billion project will be worked on within 48 months or is targeted for completion in 2022. The company is working with PT Adi Jaya to work on a 59.79 hectare dam project in the form of Joint Operations (KSO).
3. PT Pan Brothers (PBRX)
As of the first semester of 2020, the company posted sales of US $ 326.20 million, an increase of 14.54% compared to the same period in 2020 of US $ 284.79 million. Net income was recorded at US $ 12.07 million, an increase of 42.55% from the previous US $ 8.47 million at the end of the first semester of 2019. Furthermore, the company is optimistic that it can book a sales growth target of 10-15% by the end of the year. 2020. One of the things that will support the company`s sales contribution is the sale of personal protective equipment (PPE) and masks that are needed in the midst of a pandemic. The company plans to produce 100 million masks by the end of this year. To date, the company has produced as many as 40 million-50 million masks. Meanwhile, for PPE, the company has a production capacity of 10 million-15 million pcs of PPE per month. However, this capacity is not the maximum capacity of the company, because there are still operations for clothing production for global brands. Throughout the first semester of 2020, the company has realized a capex of US $ 3.3 million which is used to increase capacity through automation, digitization and upskilling of all existing operational lines.
C. MARKET STATISTICS
*DJIA +289.93 +1.05% 27796*
*NASDAQ +229.42 +2.13% 11013*
*GOLD +4.4 +0.23% 1926.2*
*OIL +0.95 +2.28% 42.56*
*COAL (Sep/Newcastle) -1.15 -2.25% 49.80*
NICKEL -110 -0.77% 14232.50
TIN -177.5 -1% 17535
*CPO (Sep`20) +33 +1.21% 2752*
*EIDO +0.42 +2.22% 19.38*
US 10yr +0.011 +1.82% 0.670
INDO 10yr -0.0254 -0.36% 6.9357
INDO CDS (5yr) +0.227 +0.216% 105.143
*TLK 39.78 (2943) vs 2950 (TLKM)*
IDR (Spot) 14,760
IDR (Bloomberg, 13/08/20/Fut, 04.45) 14,760
*IDX Range : 5,192 - 5,277*
*USD/IDR Range: 14,690 - 14,825*
D. STOCK WATCHLIST
SOS : PTBA, ADRO, ITMG, UNTR, TINS
BOW : BBNI, ASII, BBRI, WIKA, CTRA, SMGR, TOWR, PWON, JSMR, GGRM.
GFS ASIA TEAM
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