Indonesia Market Today - 8 October 2020
A. INDONESIA MORNING MARKET REVIEW
Thursday (08/10/2020). After being declared free of sympton for the past 24 hours, President Trump tweeted that he would provide a stimulus package for the US aviation industry and several other stimulus packages which prompted the DJIA to strengthen sharply by +530.70 points (+ 1.91%), the biggest daily increase since July 2020. Sentiment Other positives came from the strengthening of commodity prices including: Oil + 0.43%, Gold + 0.51%, CPO + 2.09% & Nickel + 0.12% and EIDO + 0.39% and * the more prominently the procurement of the Covid19 vaccine at the end of 2020 after President Jokowi signed the Presidential Decree Number 99 of 2020 concerning Vaccines Procurement and Implementation of Vaccinations * where the positive sentiment is estimated to have the potential * to encourage the JCI to regain its strength this Thursday * amidst the achievement of the highest number of victims infected and killed due to Corvid19, where on Wednesday there was an addition of around +4,538 people ( increase + 1.46%) infected with Corvid so far the victims infected by Corvid19 have reached 315,714 o now with the addition of the death toll on Wednesday as many as +98 people (an increase of + 0.86%) so that so far the death toll has reached 11,472 people. (Fatality Rate of 3.63%) *.
President Jokowi has signed and stipulated Presidential Regulation (Perpres) No. 99/2020 concerning Vaccines Procurement and Vaccination Based on Article 5 paragraph 1, the assignment as intended in Article 4 paragraph 1 to PT Bio Farma (Persero) is carried out by the Minister of Health. The Parent Holding for Pharmaceutical State-Owned Enterprises (BUMN) * is targeted to be able to produce 250 million doses of Covid-19 vaccine by the end of 2020 *.
B. INDONESIA CORPORATE NEWS
1. PT Vale Indonesia (INCO)
The company officially announced the sale of 20% of its shares to PT Inalum or MIND ID. The 20% share divestment amounted to Rp 5.52 trillion, consisting of 1.98 billion shares. After the divestment, the company will carry out a debottlenecking study to maximize the current smelter production capacity. INCO`s production target until the end of the year is still 73,700 tons. The increase in the production target was due to INCO`s decision to postpone the construction of electric furnace 4 which was originally scheduled to be carried out in the fourth quarter of 2020, but was postponed to the second quarter of 2021.
2. PT Waskita Karya (WSKT)
The company has the opportunity to get cash inflow of up to Rp 14 trillion in the fourth quarter of 2020. As of August 2020, WSKT has recorded cash receipts from the project term of around Rp. 14 trillion. WSKT is currently participating in a project tender with a total value of around Rp. 12 trillion and it is hoped that the contract will be obtained in the remainder of this year. The company is also still eyeing several toll road and pipeline projects with a total value of up to Rp 14 trillion.
3. PT Phapros (PEHA)
The company continues to actively add to its product portfolio in 2020. Until now, the company has launched 12 kinds of new products. The company will also add 3 other types of new products until December 2020. Its contribution, to the 12 new products, is that the portion of sales to total revenue is still below 10%, but in the next 2-3 years the contribution of these new products will continue to increase.
C. MARKET STATISTICS
*DJIA +530.7 +1.91% 28303*
*NASDAQ +210 +1.88% 11364*
*GOLD +9.6 +0.51% 1891.1*
*OIL +0.17 +0.43% 40.07*
COAL (Okt/Newcastle) -0.10 -0.17% 58
*NICKEL +17.5 +0.12% 14552.5*
TIN -60 -0.33% 18072.5
*CPO (Nov`) +60 +2.09% 2927*
*EIDO +007 +0.39% 18.06*
*TLK 18.34 (2700) vs 2660 (TLKM)*
*US 10yr +0.0430 +5.80% 0.7850*
INDO 10yr +0.0161 +0.23% 7.0170
*INDO CDS (5yr) -1.007 -0.965% 103.419*
IDR (Spot) 14,710
*IDX Range : 4,966 - 5,050*
*USD/IDR Range: 14,650 - 14,790*
D. STOCK WATCHLIST
GGRM, PGAS, CPIN, KLBF, EXCL, BBNI, MBAP, INTP, HMSP, BBCA.
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