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Indonesia Morning Market - 26 August 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (26/08/2020). There seems to be a chance that the JCI will continue its strengthening in trading this Wednesday following the increase in EIDO by + 2.48% accompanied by an increase in several commodity prices including: Oil + 2.50%, Gold + 0.05%, Nickel + 0.59% & Tin + 0.19% amidst the highest number of victims who infected and killed due to Corvid19, where on Tuesday there was an increase of around +2,447 people (up + 1.57%) infected with Corvid * so that so far the victims infected by Corvid19 reached 157,859 people with an additional death toll on Tuesday as many as +99 people (up + 1.46%) so that So far the death toll has reached 6,858, leading to 7,000 dead in the near future (Fatality Rate of 4.34%) *.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Bank Tabungan Negara (BBTN)

The company said the Covid-19 pandemic had made the company make various adjustments, starting from business strategy, business processes, to the company`s business targets. As a result, the company is aiming for a net profit in the range of Rp1.1 trillion-Rp1.2 trillion by the end of 2020. As of June 2020 it has reached Rp. 768 billion. The company is targeting total assets to grow at the level of 4-5 percent. Then, credit and financing are targeted to increase at the level of 5% -6%. Then, Bank BTN also targets Third Party Funds (DPK) to grow in the range of 8% -9%.

 

2. PT United Tractors (UNTR)

The company finally decided to revise its heavy equipment sales target for this year to around 1,300-1,400 units from the previous number of 2,800 units. This downward revision of the sales target was carried out by considering the Covid-19 pandemic which affected commodity prices, particularly coal. In total, during semester 1/2020, UNTR posted a net income of IDR 33.2 trillion or a 23% decrease compared to the same period in 2019, which was IDR 43.3 trillion.

 

3. PT Indo Tambangraya Megah (ITMG)

The company is optimistic that it will be able to realize its coal sales volume target of 22 million tons in 2020. During Semester I-2020, ITMG was able to sell 11.1 million tons of coal exported to China as much as 3.2 million tons, Japan as much as 2.6 million tons) , Philippines with 800 thousand tons, Thailand 700 thousand tons, while sales in Indonesia amounted to 1.9 million tons and the rest to East Asia and Southeast Asia. Furthermore, the company still allocates USD50 million in capex funds in 2020, while as of the end of June 2020, USD11 million has been spent.

 

4. PT Buana Lintas Lautan (BULL)

With the addition of a fleet of 8 tankers during the First Semester of 2020 which is devoted to serving the international tanker market which will fully contribute to the Second Semester of 2020, the projected EBITDA BULL at the end of 2020 will increase by more than 2.5 times and net profit from operating results will increase more. from 3.5 times compared to 2019. The easing of lockdowns and the re-opening of ship repair yards caused around 5% of the world`s fleets to carry out previously delayed docking activities. The number of vessels docking in last June increased by 84% compared to May and is expected to continue to increase for the next few months. This phenomenon provides a positive signal for an increase in ship rental rates during the Second Semester of 2020 and even to the First Semester of 2021.

 

5. PT Merdeka Copper (MDKA)

The company is offering Continuous Bonds I Phase II of 2020 with a principal amount of IDR 300 billion consisting of two series. Series A has a principal amount of Rp.149 billion with an interest of 8.25 percent per year and a period of 367 days, while series B has a principal amount of Rp.151 billion with an interest of 10.25 percent and a term of 3 years. Pefindo has assigned the bonds an idA rating.

 

6. PT Waskita Beton Precast (WSBP)

Fitch Ratings Indonesia has downgraded its National Long-Term Rating from concrete producer PT Waskita Beton Precast Tbk (WSBP) to `CCC- (idn)`, from `BB (idn)` / Negative, and placed it on a Negative Rating Watch (RWN). At the same time, Fitch has also lowered the national rating for its WSBP unsecured bond program by IDR2 trillion and bonds issued under the program to `CCC- (idn)` from `BB (idn)`.

 

 

C. MARKET STATISTICS

DJIA -60 -0.21% 28248
*NASDAQ +86.76 +0.76% 11466*
*GOLD +1 +0.05% 1937.10*
*OIL +1.06 +2.50% 43.45*
COAL (Sep/Newcastle) -0.05 -0.10% 48.80
*NICKEL +87.5 +0.59% 14997.5*
*TIN +32.5 +0.19% 17400
CPO (Oct`) -47 -1.74% 2650
*EIDO +0.49 +2.48% 20.24!!*
US 10yr +0.0360 +5.57% 0.6820
INDO 10yr -0.0304 -0.44% 6.8876
*INDO CDS (5yr) -1.999 -2.021% 96.892*
*TLK 40.30 (2956) vs 2980 (TLKM)*
IDR (Spot) 14,649.5
IDR (Bloomberg, 26/08/20/Fut, 05.25) 14,649.5

*IDX Range : 5,297 - 5,383*
*USD/IDR Range: 14,590 - 14,720*

 

 

D. STOCK WATCHLIST

GGRM, SMRA, INDF, RALS, AKRA, CTRA, BBRI, SMGR, ICBP, TBIG.

 

 


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