Indonesia Market Today - 28 September 2020

A. INDONESIA MORNING MARKET REVIEW

Monday (28/09/2020). After the JCI fell by -2.24% over the past week accompanied by a Net Sell of foreign investors of Rp 2.51%, at the beginning of this week, * Monday, the JCI is expected to have the opportunity to continue strengthening * following the continued increase of DJIA by + 1.34% driven by strengthening technology stocks and a stimulus package worth US $ 2.4 trillion to be voted at the earliest next week. Positive sentiment also came from an increase in EIDO by + 2.65% and a rebound in CP + 2.83% & Nickel + 0.14% prices amidst the achievement of the highest number of victims infected and killed due to Corvid19, where for 3 days (Friday to Sunday) there was an increase of around +13,191 people (up + 5.03%) infected with Corvid * so far the number of victims infected by Corvid19 has reached 275,213 people with an additional death toll for 3 days of +281 people (an increase of + 2.78%) so that so far the death toll has reached 10,386 people, (* if the pattern is still the same, it could happen that 19,000 people will die at the end of December 2020 *) (Fatality Rate of 3.77%) *.

BI predicts inflation of 0.01% in September 2020.

With these developments, the inflation forecast for September 2020 is estimated at 0.95% ytd and annually at 1.48% yoy.

The issuance of corporate bonds in the third quarter was higher than in the first semester.

Referring to data from the IDX, since the beginning of the year until September 25, 2020, as many as 81 corporate bonds have been issued with an issuance value of IDR 65.43 trillion. In the first semester of 2020, corporate bond issuance was only IDR 30.03 trillion. This means that during the third quarter of 2020, the issuance of corporate bonds has reached Rp 35.40 trillion or has passed the first semester of 2020.

B. INDONESIA CORPORATE NEWS

1. PT Medco Energi International (MEDC)

The company announced that it pocketed around IDR 1.78 trillion from additional securities with pre-emptive rights (HMETD). The proceeds from the rights issue will be used for working capital for the company and or its subsidiaries, namely Medco E&P Natuna Ltd, PT Medco E&P Tomori Sulawesi, and PT Medco E&P Indonesia. On the other hand, MEDC will make early repayments for the company`s bonds which will mature worth IDR 2.7 trillion in 2021.

2. PT Adhi Karya (ADHI)

The company is ready to work on two preservation projects for the Lintas Timur Sumatra National Road. The project has a concession period of 15 years consisting of 3 years of construction and 12 years of service. The estimated investment cost for this project is IDR 916.4 billion. As a follow up, we formed a JV named PT Jalintim Adhi Abipraya (JAA). The company`s ownership scheme is 60% owned by ADHI, while the rest is owned by Brantas Abipraya. Meanwhile, PT JAA`s authorized capital is set at Rp. 100 billion with a paid up capital of 25% or equivalent to Rp. 25 billion.

3. PT Metropolitan Kentjana (MKPI)

The company is developing a new project in the form of residential houses this year, namely Pondok Indah Townhouse. The project has a land area of 138 m2 and a building area of around 300 m2. Pondok Indah Townhouse is divided into four blocks, each unit consisting of three and four floors. MKPI markets 37 housing units with selling prices ranging from Rp 6 billion to Rp 9 billion. The sales target for this year is around 18 units.

4. PT Buyung Poetra Sembada (HOKI)

Regarding semester II-2020, the company is focusing on the construction of a new factory located in South Sumatra and is targeted to be completed by mid-2021. This development is estimated to cost up to Rp 100 billion. In addition, the company is processing additional rice drying facilities at the factory located in Subang. This facility is estimated to be completed in semester 1/2021.

C. MARKET STATISTICS

*DJIA +241.3 +1.34% 27173*
*NASDAQ +241.3 +2.26% 10913*
GOLD -12.60 -0.66% 1864.30
OIL -0.27 -0.66% 40.04
COAL (Okt/Newcastle) -1 -1.67% 58.80
*NICKEL +20 +0.14% 14387.5*
TIN -420 -2.41% 17025
*CPO (Nov`) +86 +2.83% 3120*
EIDO +0.45 +2.65% 17.42
*TLK 18.33 (2726) vs 2690 (TLKM)*
US 10yr -0.007 -1.05% 0.6590
INDO 10yr -0.015 -0.21% 7.0444
INDO CDS (5yr) -0.526 -0.44% 119.169
IDR (Spot) 14,872.5

*IDX Range : 4,911 - 4,994*
*USD/IDR Range: 14,810 - 14,940*

D. STOCK WATCHLIST

BBNI, MBAP, BBRI, JPFA, GGRM, BBCA, LSIP, UNTR, ADRO, AALI.

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