Indonesia Market Today - 23 September 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (23/09/2020). After 2 days the JCI fell -125.13 points (-2.5%), * This Wednesday there is a hope that the JCI will experience a rebound, aka limited strength * as the DJIA reversed after last night`s closing rose by + 0.52% driven by strengthening stocks based on retail and technology. Positive sentiment also came from * the strengthening of Coal`s commodity prices by + 0.60% to close to $ 60 so that investors can focus on shares of MBAP, ADRO, ITMG, PTBA, HRUM *. Furthermore, positive sentiment came from the strengthening of Nickel and Tin commodity prices amidst the attainment of the highest number of victims infected and killed due to Corvid19, where on Tuesday there was an increase of around + 4,071 people (up + 1.63%) infected with Corvid so far the victims infected by Corvid19 reached 252,923 people with the addition of the death toll on Tuesday as many as +160 people (up + 1.65%) so that so far the death toll has reached 9,837 people, to 10,000 people killed in the near future (Fatality Rate of 3.89%) *.

The Ministry of Finance is optimistic that in 2021 the Indonesian economy will grow to 5.5%.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said "Indonesia`s economic growth will be negative this year, but hopefully next year it will not be as deep as other countries". This optimism is driven by several main factors, namely the government has made a very anticipatory response. This is reflected in the 2020 outlook which shows that all components of the Gross Domestic Product (GDP) such as exports, imports, household consumption and so on are all negative or contracted, except for government consumption which grew positively. The optimism that next year will also bring better growth for the export and import components, investment and household consumption.

B. INDONESIA CORPORATE NEWS

1. PT Link Net (LINK)

The company said that with this PSBB volume II there would be an increase in traffic reaching 51%, if the PSBB volume I was around 47%. The increase is due to the fact that the internet has become a crucial need with the application of working from home (WFH). In addition, there was an increase in new subscribers from January to July, the company noted that there were 116 thousand new customers, far exceeding the realization in 2019 which recorded the addition of 73,500 new customers. Thus, until the end of July 2020, the company has a total of 784 thousand subscribers. This year, the company has budgeted a capex of Rp 2 trillion. In addition to expansion, the budget is also allocated for network repairs, network upgrades and network expansion.

2. PT Cisadane Sawit Raya (CSRA)

Until the first semester of 2020, the company recorded a profit for the current period of IDR 43.04 billion, an increase of 872.65% compared to the end of the first semester of 2019 which recorded a profit for the current period of only IDR 4.4 billion. Meanwhile, total business sales in the first semester of 2020 amounted to IDR273.33 billion, growing 22.42% compared to the end of June 2019 which was recorded at IDR223.46 billion.

3. PT Sky Energy Indonesia (JSKY)

The company will increase its capital by giving pre-emptive rights or rights issue with a target fund of Rp99 billion. The company will issue 199 million new shares through a rights issue. The implementation price is priced at Rp. 500 per share. The funds raised from the rights issue will be used for working capital. The need is related to the completion of the second factory in Cisalak, Depok, which will start operating soon.

4. PT Sky Energy Indonesia (JSKY)

Next year, the company projects that it can pocket sales of up to Rp 1.32 trillion or an increase of 104% from the estimated sales in 2020 which is pegged at Rp 648.7 billion because the company has two factories that can support the government`s program. So far, the company operates a solar cell and solar module factory in Depok. The factory, which has been operating since 2008, has a production capacity of 100 megawatt-peak (MWp) solar cells and 200 MWp solar modules. In October 2020, JSKY completed the construction of a new factory located in Cisalak. The two-hectare factory has a solar cell production capacity of up to 100 MWp.

C. MARKET STATISTICS

*DJIA -140.4 +0.52% 27288*
*NASDAQ +184 +1.71% 10963*
GOLD -13.9 -0.72% 1904.20
OIL -0.04 -0.10% 39.55
*COAL (Okt/Newcastle) +0.35 +0.60% 59.15*
*NICKEL +32.5 +0.22% 14580*
*TIN +190 +1.05% 18235*
CPO (Nov`) -49 -1.62% 2995
EIDO -0.23 -1.30% 17.48
*TLK 18.92 (2800) vs 2780 (TLKM)*
US 10yr -0.007 -1.04% 0.6440
INDO 10yr -0.0211 -0.30% 7.0445
INDO CDS (5yr) +2.458 +2.275% 110.0541
IDR (Spot) 14,785

*IDX Range : 4,895 - 4,978*
*USD/IDR Range: 14,710 - 14,845*

D. STOCK WATCHLIST

TBIG, SSIA, MAPI, MIKA, ADRO, JPFA, ICBP, PGAS, MBAP, ACES.

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