Indonesia Market Today - 14 September 2020

A. INDONESIA MORNING MARKET REVIEW

Monday (14/09/2020). There is * a big chance that the JCI will continue its strengthening in trading this Monday * referring to the combination of PSBB implementation this time which is more "looser" than the previous PSBB (* read the 9 differences between PSBB this time and the previous one *) as well as an increase in DJIA by + 0.48%, EIDO + 2.47% and increases in commodity prices including: Coal + 1.79%, Oil + 0.24%, Nickel + 2.09% & Timah + 0.35% amidst the achievement of the highest number of victims infected and killed due to Corvid19, where for 3 days (Friday to Sunday) there were additional around +11,179 people (an increase of + 5.47% and if the pattern of infection is still like this then * it is estimated that there will be 500,000 people infected with Covid in December 2020 *) infected with Corvid * so that so far the victims infected with Corvid19 have reached 218,382 people with an additional death toll for 3 days (Friday to Sunday) as many as +267 people (up + 3.16%) so that so far the death toll has reached 8,723 people, to 10,000 people killed in the near future (Fatali ty Rate of 3.99%) *.

Not Total Lockdown, These are 9 Differences in Anies` Policy from the Previous.

The following are the differences between the previous regulations, including: as many as 11 business sectors are allowed to operate by implementing strict health protocols and limiting employee capacity to a maximum of 50%; Offices or certain places may operate with a maximum of 50% employees. This policy is different from the previous one which was prohibited from operating; Non-essential activity places or private offices can operate, even though the previous PSBB was prohibited from opening. However, this time by operating with capacity restrictions; Markets and shopping centers may operate. This is different from the previous PSBB, where markets and shopping centers were prohibited from operating; Online motorcycle taxis are allowed to transport passengers from previously only ordering food and delivery of goods and the regulation of sanctions for violating health protocols is now being added. This is different from the previous PSBB. Law enforcement will tighten up with a progressive sanction mechanism for repeated violations.

B. INDONESIA CORPORATE NEWS

One new issuer will be listed on Monday, September 14, 2020, namely: ENZO

1. PT Morenzo Abadi Perkasa Tbk (ENZO)

The company will become the 45th issuer of the Indonesia Stock Exchange (IDX) in 2020. The company released 392 million shares with an exercise price of Rp105 or Rp 41.16 billion. ENZO has business activities in the processing of crab and frozen seafood. Currently, the company has exported products to the United States, Europe and Hong Kong.

2. PT PP (PTPP)

The company began to carry out the construction of the Bogor Heritage and Ecopark Apartment projects worth IDR 1.29 trillion after the groundbreaking ceremony was carried out on Sunday (13/9/2020). The work has a duration of 20 months or is targeted to be completed in March 2020. Meanwhile, PTPP will build seven apartment towers, where each tower consists of two basements, 18 floors, and one roof floor.

3. PT Jasa Marga (JSMR)

The company has absorbed a capital expenditure budget of IDR 16 trillion by September 2020, which is divided into the Jakarta-Cikampek II Elevated Toll Road, Pandaan-Malang Toll Road, Manado-Bitung Toll Road and Balikpapan-Samarinda Toll Road. There are several sections that are expected to be completed by the end of 2020, namely Balikpapan-Samarinda Toll Road Section 1 and Section 5. The company is also targeting completion of section 2A of the Manado-Bitung toll road. In Java, Jasa Marga targets the completion of the Bogor Ring Road Section 3A Simpang Yasmin-Semplak, Kunciran-Cengkareng Toll Road and Cinere-Serpong Toll Road. The Kunciran-Cengkareng and Cinere-Serpong toll roads are part of the Jakarta II or JORR II outer ring toll road network. On the other hand, Jasa Marga will also invest up to IDR 6.6 trillion for the Solo-Yogyakarta-NYIA Kulon Progo toll road project.

4. PT Indofarma (INAF)

The company will import around 50 units of rapid test products based on artficial intelligence (AI) from the United Arab Emirates. The company is still in the final stage of negotiations regarding the amount of the fee for the transaction pending the completion of the cooperation contract agreement. Previously, the company has produced domestic-made rapid tests of up to 300 thousand pcs per month. Indofarma, is now more focused on the medical device business since joining the BUMN Pharmaceutical holding.

5. PT Indonesia Vehicle Terminal (IPCC)

In August, the volume of general cargo handled was 3,807 M3 at the international terminal, an increase of 33.04% compared to July 2020 of 2,862 M3. Of this, 2,732 M3 were export activities, up 81.06% (MoM), while imports fell 20.52% (MoM) to 1,075 M3. Meanwhile, the heavy equipment segment at the international terminal fell 17.22% (MoM) to 601 units from 726 units in the previous month. Meanwhile, total exports reached 432 units, down 9.81% (MoM) and imports by 169 units or down 31.58% (MoM). In the CBU segment, the restriction on the number of vehicles entering export destination countries again caused the number of CBU exports in August 2020 to drop back to 15,021 units or a slight decrease of 7.54% (MoM). This figure consists of exports totaling 13,844 units or a slight decrease of 6.07% (MoM) and imports, which fell 21.95% to become 1,177 units. Meanwhile, at the domestic terminal the number of cargoes / throughput handled again shows an improvement. From the CBU segment, the number handled was 7,561 units, an increase of 8.08% (MoM) compared to the previous month`s 6,996 units. In the heavy equipment segment, 1,445 units were handled, an increase of 8.89 percent compared to the previous month. The General Cargo segment handled 865 M3 or up 38.59% (MoM). Not to be left behind, motorcycle cargoes were 1,584 units, an increase of 29.20% (MoM).

6. PT Fast Food Indonesia (FAST)

The company will continue to expand even though DKI Jakarta will implement large-scale social restrictions (PSBB) starting September 14, 2020. The company will open 10 new outlets by the coming year. Revenue from the restaurant support center in Jakarta has long been the backbone of the company`s revenue. This is reflected in the revenue amounting to Rp913.69 billion or 36.33% of the company`s total turnover during the first half of this year from the Jakarta area.

7. PT Ciputra Development (CTRA)

The company stated that the prospect of selling middle and upper segment houses is still far from expectations. The company said that the middle and upper class housing sales segment is likely to revive in the second semester of 2021. Until the end of semester I / 2020, CTRA has recorded marketing sales of IDR 2 trillion, down 16.2% compared to the same period last year. This amount reached 44.4% of the new pre-sale target which was set at IDR 4.5 trillion.

C. MARKET STATISTICS

*DJIA +131.06 +0.48% 27765*
NASDAQ -66.05 -0.60% 10853
GOLD -16.20 -0.82% 1948.10
*OIL +0.09 +0.24% 37.39*
*COAL (Okt/Newcastle) +0.95 +1.79% 54.15*
*NICKEL +310 +2.09% 15110*
*TIN +62.50 +0.35% 18015*
CPO (Nov`) -6 -0.21% 2808
*EIDO +0.43 +2.47% 17.81*
*TLK 18.17 (2760) vs 2810 (TLKM)*
US 10yr -0.0160 -2.34% 0.6690
INDO 10yr +0.0356 +0.51% 7.0897
INDO CDS (5yr) +0.622 +0.67% 93.089
IDR (Spot) 14,890

*IDX Range : 4,981 - 5,064*
*USD/IDR Range: 14,830 - 14,970*

D. STOCK WATCHLIST

BBRI, GGRM, BBNI, JPFA, MBAP, UNVR, INDF, TLKM, KLBF, MYOR.

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