Indonesia Market Today - 30 September 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (30/09/2020). After previously the DJIA strengthened + 2.85%, due to the waiting action of the President`s debate between Trump and Joe Biden and the increase in the daily positive rate of the corona virus test which returned to above 3%, making DJIA fall by -0.48%, which has the potential to become a negative sentiment, along with the decline in Oil by -3.60%, Coal -0.59%, Nickel -0.34% & CPO -1.22%, for trading this Wednesday. On the other hand, * the strengthening of Gold commodity prices by + 0.88% & Timah + 0.58% has the potential to push up shares under these commodities (MDKA, ANTM, PSAB, UNTR, TINS) * amidst the attainment of the highest number of victims who were infected and died due to Corvid19, where on Tuesday there was an increase of around +4,002 people (up + 1.43%) infected with Corvid so far, the number of victims infected by Corvid19 reached 282,724 people with an additional death toll on Tuesday as many as +128 people (up + 1.22%) so that so far the death toll has reached 10,601 people. (Fatality Rate of 3.75%) *.

B. INDONESIA CORPORATE NEWS

1. PT Dian Swastatika Sentosa (DSSA)

The company obtained a financing facility from PT Bank Mandiri (BMRI) of up to Rp 200 billion. The facility has a term of until November 7, 2021. The interest rate is pegged at 9% per annum and is guaranteed, among others, by DSSA assets.

2. PT Perusahaan Gas Negara (PGAS)

In the August 2020 period, the company recorded a gas distribution volume of 819 Billion British Thermal Units per Day (BBTUD) in August, 2020, up 4.06% from the distribution achievement in the July 2020 period which was recorded at 787 BBTUD. In detail, this distribution volume consists of distribution volume by PGN itself of 732 BBTUD (vs 714 BBTUD in July), PT Gagas Energi Indonesia at 4 BBTUD (vs 5 BBTUD in July), and Pertagas at 83 BBTUD (vs 68 BBTUD in July). ). Meanwhile, for transmission volume, PGAS recorded a volume of 1,257 million standard cubic feet per day (MMSCFD), an increase of 2.52% on a monthly basis from the July 2020 period (1,226 MMSCFD). If detailed, PGN contributed 3 MMSCFD while Pertagas contributed 1,255 MMSFD in August. For the upstream lifting segment, PGAS recorded a volume of 17,478 Barrels of oil equivalent per day (BOEPD), up 4.58% on a monthly basis from July 2020 which was only 16,712 BOEPD.

3. PT Alam Sutera Realty (ASRI).

The company`s subsidiary, Alam Synergy Pte Ltd, will exchange global bonds (senior notes) worth US $ 115 million in 2021 and US $ 370 million in 2022 for new senior notes. The old global bonds of ASRI`s subsidiary are recorded to have a coupon of 11.50% and 6.625%, respectively. These bonds will be exchanged for two global bonds maturing in 2024 and 2025 respectively. US $ 60 million in April 2020, bringing the outstanding senior notes to US $ 115 million, from US $ 175 million previously. On the other hand, Moodys Investor Services has downgraded the bonds issued by Alam Synergy`s subsidiary maturing in 2021 and 2022 from Caa1 to Caa3. Moodys has also assigned a rating (P) Caa1 for the 2024 and 2025 notes that will be issued by Alam Sutera and are being reviewed for cuts. Outlook has been changed from negative to under review.

4. PT Pelita Samudera Shipping (PSSI)

The company succeeded in obtaining vessel financing from Citibank worth US $ 20 million. On the other hand, the volume of the MV segment increased by 44% yoy and the company managed to secure several long-term contracts, added 16 new customers compared to 2019 and started serving international markets to Vietnam and the Philippines. Total term lease income as of 31 August 2020 was US $ 9.2 million, up 64% from US $ 5.6 million as of 31 August 2019. The company posted revenues of US $ 45.8 million as of 31 August 2020. PSSI also succeeded in strengthening EBITDA margin of 38%, higher than the same period last year of 35%. In addition, the average freight rate has increased by 25% to US $ 3.0 per metric ton in the eight months of 2020 compared to US $ 2.39 per metric ton in the same period last year.

5. PT FKS Multi Agro (FISH)

The company obtained a syndicated credit facility worth a total of US $ 233.59 million for refinancing and capital expenditures. Furthermore, the loan facility received by FISH worth the equivalent of US $ 70 million will be used to refinance the syndicated loan in 2017 which is equivalent to US $ 30 million. Meanwhile, the remaining US $ 40 million will be used for capital expenditures.

C. MARKET STATISTICS

DJIA -131.4 -0.48% 27452
NASDAQ -32.28 -0.29% 11085
*GOLD +16.6 +0.88% 1903*
OIL -1.46 -3.60% 39.11*
COAL (Okt/Newcastle) -05 -0.59% 58.65
NICKEL -50 -0.34% 14455
*TIN +100 +0.58% 17452*
CPO (Nov`) -35 -1.22% 2830
EIDO -0.09 -0.52% 17.28
*TLK 17.79 (2650) vs 2630 (TLKM)*
US 10yr -0.018 -2.71% 0.645
INDO 10yr +0.0201 +0.28% 7.0412
INDO CDS (5yr) -0.656 -0.561% 116.178
IDR (Spot) 14,895

*IDX Range : 4,838 - 4,925*
*USD/IDR Range: 14,815 - 14,950*

D. STOCK WATCHLIST

ERAA, MDKA, MBAP, UNVR, ADRO, SMRA, ICBP, MYOR, UNTR, BBNI.

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