Indonesia Market Today - 16 September 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (16/09/2020). Trading on the Indonesian Stock Exchange will be much more conducive this Wednesday because * JCI is expected to move limitedly to a limited strength * following the EIDO which is still slightly weaker -0.35% but on the other hand, the DJIA has slightly strengthened + 0.01% and several commodity prices have strengthened including: Oil +2.74 %, Coal + 0.56%, Gold + 0.05%, CPO + 1.66% & Timah + 0.39% amidst the attainment of the highest number of victims infected and killed due to Corvid19, where on Tuesday there was an increase of around +3,507 people (increase + 1.58% and if The pattern of infection is still like this so * 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 225,030 people with an additional death toll on Tuesday of +124 people (up + 1.40%) so far This death toll has reached 8,965, to 10,000 in the near future (Fatality Rate of 3.98%) *.

Again, IEA Trims its 2020 Oil Demand Outlook.

The International Energy Association (IEA) has again cut its fuel consumption forecast for the remainder of this year in line with the increasing number of positive cases of Covid-19 in many countries. The IEA expects global oil demand to fall by 8.4 million barrels this year, a fall of more than 300,000 barrels than originally estimated. The IEA projection cuts have occurred for two consecutive months. Meanwhile, for the fourth quarter of 2020 the IEA estimates global oil demand will shrink by 5 million barrels per day, contracting about 600,000 barrels more deeply than last month`s forecast.

B. INDONESIA CORPORATE NEWS

1. PT Merdeka Copper Gold (MDKA)

The company assesses that the incidence of land subsidence on the heap leach surface of the Tujuh Bukit project on 12 September 2020 could affect the realization of this year`s product target. Meanwhile, the total used capex for this year is estimated to reach US $ 80 million, with the details that until the first semester of 2020, the company has realized the use of capex of US $ 30 million and the second semester of this year is estimated to be absorbed again at US $ 50 million.

2. PT Astra International (ASII)

Based on Gaikindo data, car sales by the Astra Group in August 2020 reached 16,773 units. The sales realization grew 65.41% compared to the July 2020 achievement of 10,140 units. The biggest car sales contribution came from the Toyota brand, followed by Daihatsu and Isuzu. Meanwhile, overall domestic car sales reached 37,277 units, so that Astra`s market share reached 45%. Thus, the cumulative sales of Astra cars for the January-August 2020 period amounted to 166,418 units. However, the acquisition decreased by 51.7% compared to the same period in 2019 of 344,581 units.

3. PT Wijaya Karya Bangunan Gedung (WEGE)

As a result of the covid-19 pandemic, the company was forced to temporarily suspend 11 projects that were being worked on. Operational stoppages occurred in 11 projects out of a total of 58 projects that were worked on or 19 percent of the total based on data on August 31, 2020, for Operational Limits, applied to head office employees with a percentage of WFH employees of 80% and WAO (Work at Office) of 20%.

4. PT Waskita Karya (WSKT)

The company announced an affiliated transaction in the form of providing loans from its subsidiary, PT Waskita Toll Road (WTR), namely PT Cimanggis Cibitung Tollways (CCT). The transaction value reached IDR 612.12 billion. The interest rate on this facility is 17% per annum of the outstanding loan amount.

5. PT Hexindo Adiperkasa (HEXA)

Heavy equipment sales up to July 20 reached 243 units. The Agro sector was still the main support for the achievement of the Company`s heavy equipment sales during that period. In detail, the contribution from the Agro sector reached 61 units or around 32% of the Company`s total heavy equipment sales. Meanwhile, Forestry contributed 59 units (31%), then Construction 41 units (22%), Mining 24 units (13%), others 6 units (3%), Wheel Loaders 3 units, Mini Excavator 49 units & ADT Bell yet. give contribution. As of July 2020, HEXA sales decreased by approximately 64% to USD 59.27 million from USD 130.05 million in the same period before.

C. MARKET STATISTICS

*DJIA +2.27 +0.01% 27995*
*NASDAQ +133.6 +1.21% 11190*
*GOLD +1.1 +0.05% 1966.30*
*OIL +1.02 +2.74% 38.28*
*COAL (Okt/Newcastle) +0.30 +0.56% 54.10*
NICKEL -22.50 -0.15% 15245
*TIN +70 +0.39% 18205*
*CPO (Nov`) +48 +1.66% 2941*
EIDO -0.06 -0.32% 18.45
*TLK 18.93 (2810) vs 2830 (TLKM)*
US 10yr +0.008 +1.19% 0.6790
INDO 10yr +0.020 +0.28% 7.0506
*INDO CDS (5yr) +0.056 +0.061% 91.61*
IDR (Spot) 14,845

*IDX Range : 5,056 - 5,140*
*USD/IDR Range: 14,765 - 14,900*

D. STOCK WATCHLIST

UNTR, ERAA, HRUM, INTP, ASII, BBRI, GGRM, BBNI, JPFA, MBAP.

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