Indonesia Market Today - 2 September 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (02/09/2020). The increase in the price of technology-based shares such as Apple Inc`s shares by + 3.98% and Zoom Video Communications Inc`s share price of + 40.77% were the driving forces for DJIA to increase by + 0.76% and when combined with the increase in commodities such as: Gold + 0.14%, Oil + 0.42%, Nickel + 1.34%, Timah + 1.73%, Coal + 0.95% & CPO + 1.61% have the potential to be a further catalyst for JCI to strengthen in trading this Wednesday amid the achievement of an increase in the number of victims infected and killed due to Covid19, which was on Tuesday yesterday There are an increase of +2,775 people who have contracted Covid19 so that so far the number of victims infected with Covid19 has reached 177,571 people with the addition of 88 people killed on Tuesday so that so far the death toll has reached 7.505 people, * (Fatality Rate of 4.23%) *.

Increasingly aggressive, Indonesia`s manufacturing PMI has broken through the expansive level.

The manufacturing sector in the country is showing an aggressive stretch amidst the pressure from the impact of the Covid-19 pandemic. This is reflected in the Purchasing Managers Index (PMI) of Indonesian Manufacturing in August which was at the level of 50.8, indicating that it is expanding because it has exceeded the neutral threshold (50.0). The positive achievement of this PMI also shows that the government`s steps in mitigating the manufacturing industry sector during the Covid-19 pandemic are appropriate. In addition, the PMI surge is a good stepping stone for the domestic manufacturing industry to recover.
The Indonesian Manufacturing Index in August rose 3.9 points from the index in July 2020 which was at the level of 46.9. The average Manufacturing PMI for the third quarter of 2020 of 48.8 also indicates better conditions than in the second quarter of 2020.

Again, there is deflation, BI estimates that 2020 inflation could be below 2%.

Again, deflation occurred in August 2020, making Bank Indonesia (BI) predict that the overall inflation this year could be below the lower limit of the BI inflation target of 2% - 4%. Even in August 2020, BPS reported deflation and annual inflation was also low, 1.32%. Thus, BI believes that the end of 2020 inflation will be below the lower limit of the inflation target range. Below 2%.

B. INDONESIA CORPORATE NEWS

1. PT PP (PTPP)

The Company plans to provide loans to its subsidiary, PT PP Properti Tbk (PPRO) in the amount of Rp.495 billion. This affiliate transaction is conducted to help PP Properti meet its operational and working capital needs. According to PT PP`s management, the Rp 495 billion loan to PP Properti will bear interest of 9.5% per year or 0.791% per month. This loan is non revolving with a term of 36 months.

2. PT Ciputra Development (CTRA)

PT Hanson International (MYRX) has been declared bankrupt by the Commercial Court. Before being declared bankrupt, Hanson International through its subsidiary had a joint operation with PT Ciputra Development (CTRA). The joint operation is named PT Citra Benua Persada (CBP) with the construction of the Citra Maja Raya project. The Hanson International subsidiaries involved are PT Armidian Karyatama Tbk (ARMY) and PT Harvest Time. Based on the agreement, ARMY and Harvest Time are obliged to provide land ready for development with a total area of 430 hectares (ha) in Maja, Lebak, Banten. The Independent Director of CTRA explained that the development of the Citra Maja Raya project is divided into three stages. For the first phase, the company said the project has been completed and all units have been sold. Stage two continues while stage three has to await Hanson`s further development.

3. PT Tower Bersama Infrastructure (TBIG)

The company plans to release a bond or Sustainable Bond IV Phase I Year 2020. The principal value is Rp 700 billion. This bond phase I is part of the Continuous Bond IV with a total value of IDR 7 trillion. The bonds in the first phase will be issued in two series. Series A with a principal amount of Rp 231 billion in bonds, offered at a fixed interest rate of 6.3%. The tenor is 370 from the date of issuance. Series B amounting to Rp 469 billion will be offered with a fixed interest rate of 8%. The term of this bond is three years. TBIG stated that it had received an AA- (double A minus) rating from the Fitch rating company on August 18 for the issuance of this phase I bond.

4. PT Mayora Indah Tbk (MYOR)

The Company has purchased 2 units of gas generating set owned by PT Nutrindo Bogarasa (NBR) worth IDR 15.07 billion. The purchase of this machine is made in order to improve efficiency in cost of goods sold, namely utility and energy costs. The company management said the purchase of 2 units of gas generating sets belonging to PT Nutrindo Bogarasa was an affiliated transaction, because the company`s shares amounted to 25.22%.

C. MARKET STATISTICS

*DJIA +215.6 +0.76% 28646*
*NASDAQ +164.2 +1.38% 11940*
*GOLD +0.14% 1976.60*
OIL +0.42% 43.00
*COAL (Okt/Newcastle) +0.95% 53.00*
*NICKEL +1.34% 15532*
*TIN +1.73% 18130*
*CPO (Nov`) +1.61% 2782*
EIDO -0.15% 19.58
IDR (Spot) 14,572

*IDX Range : 5,258 - 5,344*
*USD/IDR Range: 14,554 - 14,730*

D. STOCK WATCHLIST

BBRI, TBIG, GGRM, TOWR, BBNI, AKRA, AALI, MDKA, INCO, MBAP.

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