Indonesia Market Today - 8 September 2020

A. INDONESIA MORNING MARKET REVIEW

Tuesday (08/09/2020). After 3 days the JCI fell by around -81.77 points (-1.55%) and if you look at the decline in the JCI on day 3 which started to slow down, then referring to the Dow Futures strengthening above +200 points and referring to the futures index of several Asian exchanges which also strengthened, then there is an opportunity JCI to rebound in trade this Tuesday amid the achievement of the highest number of victims infected and killed due to Corvid19, where on Monday there was an increase of around +2,880 people (up + 1.48%) infected with Corvid * so that so far the victims infected with Corvid19 reached 196,989 people with additional casualties died on Monday as many as +105 people (up + 1.31%) so that so far the death toll has reached 8,130, up to 10,000 people killed in the near future (Fatality Rate of 4.13%) *.

This is the government`s last ammunition to boost the economy in the third quarter of 2020.

The government is still trying to reverse the economy in the third quarter of 2010. Employee salary assistance and direct cash assistance (BLT) for micro, small and medium enterprises (MSMEs) are the government`s main weapons to restore the economy in the third quarter of 2020. These two programs are two new proposals in the national economic recovery program (PEN). The projected Ministry of Finance, economic growth in the third quarter of 2020 ranges from -2% to 0%. Meanwhile, employee salary assistance is provided in cash of Rp. 600,000 per worker for four months. The target target is to reach 15.7 million workers who are actively registered as participants in the Employment Social Security Administration (BPJS) as of June 2020. Then, workers earn less than Rp. 5 million and have an account number. Thus, the total budget required for this program is IDR 37.87 trillion. Meanwhile, BLT for micro or ultra-micro enterprises received BLT of Rp 2.4 million per business actor through direct one-time transfers. The target target is 12 million businesses with an initial distribution stage of 9.1 million business actors.

Realization of the National Economic Recovery Program (PEN)

In general, up to September 2, 2020, the realization of the PEN budget had reached IDR 271.94 trillion. This figure is equivalent to 39.11% of the ceiling of IDR 695.2 trillion. Specifically, from the end of August to 2 September 2020 or in IDR 6.35 trillion. In just two days, the absorption had reached 2.4% of the realization at the end of last month. When examined, the acceleration of budget absorption has been a trend since last August with a month-long realization of Rp 63.93 trillion. More than the realization in July which was only Rp. 23.05 trillion.

B. INDONESIA CORPORATE NEWS

1. PT Indofarma (INAF)

The company signed a memorandum of understanding with Group42 (G42), an artificial intelligence and cloud computing company based in Abu Dhabi to import a coronavirus rapid test kit. This collaboration is for a diagnostic product, namely the Covid-19 laser screening test. Namely, a kind of rapid test (rapid test) for the corona virus using AI technology.

2. PT Acset Indonusa (ACST)

The company is the main contractor for the construction of the West Java Kertajati International Airport access toll road. The company will work on Package 2 with a road length of 1.5 kilometers with a contract value of IDR 260 billion.

3. PT Waskita Beton Precast (WSBP)

The company obtained a contract of nearly IDR 4 trillion from the construction of the Krian-Legundi-Bunder-Manyar (KLBM) toll road in East Java. The KLBM Toll Road stretches 38.3 km from Sidoarjo Regency to Gresik Regency. The concession owner for the KLBM toll road is PT Waskita Bumi Wira, a subsidiary of PT Waskita Toll Road. In other words, the Waskita Beton contract was obtained from an affiliated company.

4. PT Agung Podomoro Land (APLN)

The company will sell some land and shares owned by its subsidiary, PT Buana Makmur Indah. In the first phase, BMI will sell three plots of land covering an area of 912,189 square meters to CFCity which then deposit 100 percent of the land price to BMI. The second phase is the sale of three plots of land covering an area of 840,100 square meters which will be carried out one year after the date of the first phase of the land sale and purchase certificate. If CFCity fails to purchase the second phase until the specified time, CFCity is obliged to pay compensation to BMI. In addition, CFCity will also buy 6.56 percent or 7.13 million shares of PT Trans Heksa Karawang (THK) owned by BMI.

5. PT Medco Energi Internasional (MEDC)

The company through its subsidiary signed a joint venture agreement with the largest Japanese power company, Kansai Electric Power Company, will form a new business unit in the field of independent gas-fired power generation (IPP Gas) and operation and maintenance services.

C. MARKET STATISTICS

DJIA Closed 28133
NASDAQ Closed 11313
GOLD -3.10 -0.16% 1937
OIL -0.36 -0.91% 39.15
COAL (Okt/Newcastle) -0.50 -0.99% 49.90
NICKEL -117.5 0.77% 15205
*TIN +135 +0.74% 18417.5*
*CPO (Nov`) -33 -1.16% 2802*
*EIDO Closed 19.38*
*TLK 19.64 (2895) vs 2900 (TLKM)*
US 10yr Closed 0.7210
INDO 10yr -0.0019 -0.03% 7.0051
*INDO CDS (5yr) +0.317 +0.253% 88.893*
IDR (Spot) 14,740

*IDX Range : 5,187 - 5,272*
*USD/IDR Range: 14,660 - 14,800*

D. STOCK WATCHLIST

ICBP, ERAA, MYOR, ADRO, INTP, INDF, WIKA, TOWR, SMGR, BBNI.

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