Indonesia Market Today - 1 September 2020

A. INDONESIA MORNING MARKET REVIEW

Tuesday (01/09/2020). The combination of a decline in DJIA by -0.78% and an EIDO of 3.11% and a fall in commodity prices such as Oil -0.35% has the opportunity to become a negative sentiment for trading this Tuesday, amid the achievement of an increase in the number of victims infected and killed due to Covid19, where on Monday there was an increase of around +2,743 people have contracted Covid19 so that so far the victims infected with Covid19 have reached 174,796 people with an additional death toll on Monday of 74 people so that so far the death toll has reached 7,417 people, *(Fatality Rate of 4.26%)*.

Government Ensures Cigarette Excise Rates Will Increase in 2021

The government ensures that the tobacco excise tariff (CHT) will increase by IDR172.8 trillion in 2021. The increase is 4.8 percent from this year`s target of IDR164.9 trillion. Officially, the increase in cigarette excise rates will be announced at the end of September 2020. It is still a polemic because the 23 percent increase in CHT rates this year does not generate optimal revenue. This increase has taken into account the covid-19 pandemic.

B. INDONESIA CORPORATE NEWS

1. PT Media Nusantara Citra (MNCN)

The company has completed the process of increasing capital without pre-emptive rights (PMTHMETD) or private placement. Issued as many as 600 million new shares with a nominal value of Rp 100 per share, at an exercise price of Rp 855 per share taken by Scotts Capital Investment Corporation. MNCN earned fresh funds through this action reaching Rp 513 billion. Funds received by MNCN after deducting costs related to PMTHMETD will be used to strengthen MNCN`s capital structure.

2. PT Gajah Tunggal (GJTL)

The Company, in the context of developing and expanding the production facilities of the Company and its subsidiaries, has purchased 1 plot of land covering an area of 80,020 m2 from PT Softex Indonesia, at a cost of IDR 242.05 billion. The sale and purchase price of land that has been carried out is IDR 242.05 billion, paid in stages with details of IDR 48.41 billion paid on the date of signing the sale and purchase agreement deed on August 28, 2020 and the remaining IDR 193.64 billion, will be paid at the latest at the signing of the Deed of Sale and Purchase of Land and Buildings in the presence of the authorized Land Deed Maker, namely February 26, 2021.

3. PT Wijaya Karya Beton (WTON)

The company cut its new contract target this year from the original Rp 11.47 trillion to Rp 5.25 trillion. The Covid-19 pandemic as the reason they lowered their target by more than half. As of August 27, 2020, WTON has just pocketed a new contract of IDR 2 trillion.

C. MARKET STATISTICS

*DJIA -223.8 -0.78% 28430*
*NASDAQ +78.8 +0.68% 11776*
*GOLD -0.05% 1973.90*
OIL -0.35% 42.82
*COAL (Okt/Newcastle) +1.16% 52.50*
*NICKEL closed 15327*
*TIN closed 17822*
*CPO (Oct`) closed 2781*
EIDO -3.11% 19.61
IDR (Spot) 14,562

*IDX Range : 5,203 - 5,288*
*USD/IDR Range: 14,554 - 14,730*

D. STOCK WATCHLIST

JPFA, TBIG, RALS, TOWR, CPIN, AKRA, AALI, MDKA, INCO, MBAP.

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