Indonesia Market Today - 12 October 2020

A. INDONESIA MORNING MARKET REVIEW

Monday (12/10/2020). After the JCI strengthened by + 2.58% last week, * at the beginning of this week, Monday, the JCI has the opportunity to continue its increase where the JCI has the potential to head to the 5100 * level supported by quite a lot of positive sentiment, starting from the increase in the DJIA by + 0.57% and EIDO + 0.82%. Furthermore, positive sentiment came from the strengthening of several commodity prices including: Gold + 2.16%, CPO + 0.90%, Tin + 0.69% and Nickel + 3.72%. * Positive sentiment also came from the strengthening of the Rupiah, the decline in the Indo CDS and from domestic the DKI Jakarta Provincial Government to re-enforce the transitional PSBB so that the relaxation has the potential to boost the property, construction, infra, retail / consumer, chicken and cigarette feed sectors *

Remember, starting today the DKI Jakarta Provincial Government will again implement a transitional PSBB.

The Governor of DKI Jakarta decided to revoke the tightened emergency brake aka PSBB and replace it by imposing a transitional PSBB for two weeks from 12 to 25 October 2020.

Government will Get 100 Million Doses of Vaccine from AstraZeneca.

With the procurement of 100 million vaccines from AstraZeneca, the government will pay a 50% down payment for the vaccine, or around US $ 250 million at the end of October. In addition, the government is also cooperating with the Chinese company Sinovac. In the early stages, Indonesia will get 30 million by the end of 2020, with details of 20 million vaccines in the form of raw materials and 10 million in the form of finished goods. Furthermore, the procurement of the Sinoparhm vaccine will also be carried out in stages of 10 million to 30 million. Thus, the government has targeted vaccinations to be carried out for around 160 million people.

B. INDONESIA CORPORATE NEWS

1. PT Kimia Farma (KAEF)

The company has collaborated with foreign partners from South Korea to develop medicinal raw materials since 2016. In addition, the company collaborated with a Saudi Arabian company for the retail business in 2018. The operational activities of the medicinal raw material factory have resulted in the commercialization of several products including simvastatin, atorvastatin, clopidogrel, and entecavir. Meanwhile, cooperation with Saudi Arabia is already underway by opening retail outlets in Makkah, Jeddah and Medina. On the other hand, the company reported capital expenditure absorption or capital expenditure of 53% up to semester I / 2020 or around Rp. 289.91 billion of the total capex in 2020 prepared by the company of Rp. 547 billion.

2. PT Ciputra Development (CTRA)

Until the end of the third quarter of 2020, the company has pocketed marketing sales of Rp. 3.8 trillion or 84.44% of the annual target of Rp. 4.5 trillion.

3. PT Sawit Sumbermas Sarana (SSMS)

The company focuses on improving performance to pursue the CPO production target of 600 thousand MT. As for the net profit, the company targets to book as much as Rp. 400 billion by the end of 2020. To note, until September 2020, SSMS CPO production has reached 319,533 MT. Other products, namely Palm Kernel, recorded 61,610 MT and Palm Kernel Oil (PKO) 16,541 MT. Furthermore, until now the company has absorbed 60% of capex or around Rp. 370.2 billion of the total budgeted in 2020 of Rp. 617 billion, with details of the use of capex of Rp. 45 billion for planting purposes, then Rp. 444 billion for non-planting and Rp. 128 billion as capital for the construction of the Jetty and the development of the company`s existing factories.

C. MARKET STATISTICS

*DJIA +161.39 +0.57% 28586*
*NASDAQ +158.9 +1.39% 11579*
*GOLD +40.9 +2.16% 1936!!*
OIL -0.65 -1.58% 40.54
COAL (Okt/Newcastle) -0.60 -1.03% 57.40
*NICKEL +545 +3.72% 15187.50!!*
*TIN +125 +0.69% 18250*
*CPO (Dec`) +26 +0.90% 2914*
*EIDO +0.15 +0.82% 18.36*
*TLK 18.78 (2760) vs 2730 (TLKM)*
US 10yr +0.010 +1.31% 0.7750
INDO 10yr +0.025 +0.36% 7.0357
*INDO CDS (5yr) -4.823 -4.92% 93.261!!*
IDR (Spot) 14,700

*IDX Range : 5,006 - 5,090*
*USD/IDR Range: 14,630 - 14,760*

D. STOCK WATCHLIST

INCO, ANTM, WIKA, MBAP, GGRM, WSKT, CTRA, TINS, PTPP, JPFA.

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