Indonesia Market Today - 3 September 2020

A. INDONESIA MORNING MARKET REVIEW

Thursday (3/09/2020). Business and Employment Data Support pushed DJIA to close sharply higher by + 1.59% and if combined with the strengthening of EIDO by + 0.15% and rising prices for several commodities such as: Tin + 1.17%, Nickel + 1.11% & CPO + 0.97% has the potential to push * up * JCI in trade this Thursday amid the achievement of an increase in the number of victims infected and killed due to Covid19, where on Wednesday there was an increase of around +3,075 people infected with Covid19 so far the number of victims infected with Covid19 has reached 180,646 people with the addition of 111 people killed on Wednesday so far This death toll has reached 7,616 people, * (Fatality Rate of 4.22%) *.

BI Governor`s Projection for 2021 Economic Growth to Improve, Supported by Fiscal Stimulus.

The Governor of BI said that in 2021 the national economy would improve, supported by the global economic recovery and the government`s fiscal stimulus. With this spirit, Bank Indonesia (BI) projects economic growth in 2021 in the range of 4.8% to 5.8%. The projection is higher than the government version; 4.5% - 5.5%. Currently, domestic economic conditions have shown indications of improvement. Several indicators show improvement, increased human mobility in a number of regions, as well as increased retail sales figures, indicating confidence in consumption. In addition, the Purchasing Managers` Index (PMI) manufacturing indicator, which was at the level of 50.8 in August 2020, increased compared to the position in July 2020, namely 46.9.

Maintain Public Purchasing Power in the Middle of the Covid-19 Pandemic, the Government Lowered Non-Subsidized List Rates.

The government`s efforts to maintain people`s purchasing power amid the Covid-19 pandemic. The government reduced the Electricity Tariff (Tariff Adjustment) for the October-December 2020 period for 7 groups of non-subsidized customers. This is stated in the Letter of the Minister of Energy and Mineral Resources to the President Director of PT PLN (Persero) dated August 31, 2020. For medium-voltage and high-voltage customers the tariff is fixed, the same as the calculation of the electricity tariff for the July-September 2020 period. Meanwhile, specifically for household customers, 900 VA-RTM, the tariff does not increase or remains at IDR 1,352 / kWh.

B. INDONESIA CORPORATE NEWS

1. PT Medco Energi Internasional (MEDC)

The company determines the implementation price for the issuance of new shares with pre-emptive rights (HMETD) or rights issue of Rp 250 per share. With a maximum number of issued shares of 7.5 billion shares, the company has the potential to reap funds of up to Rp 1.87 trillion from this corporate action. PT Medco Daya Abadi Lestari, as the owner of 8.95 billion MEDC shares or representing 50% of the total issued and fully paid capital, has stated that it will exercise its Pre-emptive Rights in the amount of 3.58 billion shares or worth Rp 895.98 billion. Meanwhile, on August 7, 2020, Diamond Bridge Pte Ltd, as the owner of 21.38% of MEDC`s shares, also stated that it is able to absorb 1.53 billion new shares or equivalent to IDR 383.06 billion and has funds worth US $ 27.02 million. Medco will use the proceeds from the rights issue for the working capital of MEDC and / or its subsidiaries, namely Medco E&P Natuna Ltd, PT Medco E&P Tomori Sulawesi, PT Medco E&P Indonesia, PT Medco E&P Rimau, PT Medco E&P Malaka, PT Medco E&P Lematang, PT Medco E&P Tarakan, Medco Energi Bangkanai Limited, Medco Energi Sampang Pty Ltd and Ophir Indonesia (Madura Offshore) Pty Ltd.

2. PT Bank Oke Indonesia (DNAR)

The company plans to conduct a limited public offering II with HMETD or Rights Issue with a target of IDR499.67 billion in fresh funds with details of releasing as much as 2.686 billion shares at an exercise price of IDR186 per share. In this celebration, APRO Financial Co Ltd will be a standby buyer who will buy all the remaining shares offered at an exercise price of Rp186 per share if it is not fully absorbed.

3. PT Medikaloka Hermina (HEAL)

The company plans to issue sustainable bonds phase I in 2020 with a principal amount of IDR 600 billion. Meanwhile, the target for the acquisition of sustainable bond funds I reached IDR 1 trillion. Continuous bonds I phase I have two series, namely series A worth Rp275.5 billion with a coupon of 8% and a tenor of 3 years, series B worth Rp21 billion with a coupon of 8.50% and a tenor of 5 years. Meanwhile, the remainder of the principal amount offered of around Rp.303.5 billion will be guaranteed on the best possible terms and will be offered to the public in two series. Series A with a coupon of 8% and a tenor of 3 years and series B with a coupon of 8.50% and a tenor of 5 years. The funds obtained from the bond issuance are planned to be used to increase hospital capacity by around 40%, around 20% for the purchase of media and general equipment, and 40% as working capital for the company and its subsidiaries. The Hermina bonds have also received an “AA-” rating from Pefindo.

4. PT Jasa Marga (JSMR)

The company plans to increase tariffs on the Cikampek-Purwakarta-Padalarang (Cipularang) Toll Road and the Padalarang-Cileunyi (Padaleunyi) Toll Roads starting September 5, 2020 at 00.00 WIB. The Cipularang and Padaleunyi toll tariff adjustments will make a positive contribution to toll revenue performance and the achievement of toll revenue targets in Cipularang and Padaleunyi.

5. PT Kokoh Inti Arebama (KOIN)

The company obtained sales of Rp. 531.61 billion in semester 1/2020, down 28.42% compared to the same period last year amounting to Rp. 742.77 billion. In detail, ceramic sales contributed Rp 254.78 billion or 40.14 percent lower than the sales of ceramics in the first semester of last year, which amounted to Rp 425.65 billion. The sales of sack cement contributed Rp. 168.63 billion, granito with Rp. 65.64 billion, light bricks worth Rp. 41.80 billion, and other income of Rp. 734.55 million. In addition, KOIN also earned income from a foreign exchange difference of IDR 105.14 million, even though in the same period last year the issuer had to bear a loss from a foreign exchange difference of IDR 252.80 million. As a result, until the end of Semester 1/2020, the company obtained a profit for the year attributable to the parent entity amounting to IDR 481.13 million or a significant increase from the same period the previous year IDR 10.37 million.

C. MARKET STATISTICS

*DJIA +454.8 +1.59% 29101*
*NASDAQ +116.8 +0.98% 12056*
GOLD -1.42% 1949.00
OIL -3.30% 41.56
COAL (Okt/Newcastle) -2.45% 51.70
*NICKEL +1.11% 15705*
*TIN +1.17% 18342*
*CPO (Nov`) +0.97% 2809*
*EIDO +0.15% 19.61*
IDR (Spot) 14,745

*IDX Range : 5,276 - 5,362*
*USD/IDR Range: 14,554 - 14,840*

D. STOCK WATCHLIST

BBRI, MBAP, LSIP, INDF, BBNI, AKRA, AALI, PGAS, INCO, ADRO

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