Indonesia Market Today - 14 October 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (14/10/2020). After strengthening for 4 days, DJIA finally collapsed by -0.55% as Johnson & Johnson postponed the Covid19 Vaccine clinical trial & US House Speaker Nancy Pelosi rejected President Donald Trump`s latest offer on Covid-19 stimulus, as the latest sign that a bipartisan deal on virus assistance coronavirus remains unlikely ahead of the November elections. Negative sentiment also came from the fall of Gold prices by -1.70% & Coal -3.78%. On the other hand, commodity prices such as: Oil, CPO, Nickel & Tin actually increased in trading on Tuesday. Positive sentiment also came from the latest IMF WEO report which estimated that Indonesia in 2020 will contract, lower than some economists forecast and lower than other developing countries. Knowing the quite varied sentiment that developed overnight amid the issuance of the Job Creation Bill in the next few days, the JCI is still determined to continue strengthening in trading this Wednesday.

The IMF projects that Indonesia`s economic growth will grow by -1.5% in 2020.

Referring to the October 2020 World Economic Outlook (WEO) report, Tuesday (13/10), * The IMF again predicts that Indonesia`s GDP will contract by -1.5% in 2020. However, in 2021, Indonesia`s GDP will grow 6.1% * . When compared to other developing countries, the GDP contraction this year is somewhat lower. For example, in 2020 the IMF estimates that Malaysia`s GDP will contract -6.0%, Brazil -5.8%, India -10.3%, Mexico -9.0%, Thailand -7.1% and the Philippines -8.3 %. On the other hand, IMF predicts, the US economy itself will contract by -4.3% in 2020. Meanwhile, China`s economy will grow positively by 1.9% in 2020. Furthermore, US GDP will reach 3.1% in 2021. Meanwhile, China`s GDP is predicted to grow 8.2% in 2021.

B. INDONESIA CORPORATE NEWS

1. PT Aneka Tambang (ANTM)

The company will become a representative of PT Mining and Industry Indonesia (MIND ID) in the Indonesia Battery Holding (IBH) project. The investment value for the battery development project from nickel mining to battery boxes is estimated at US $ 12 billion or equivalent to Rp177.52 trillion. Later, IBH will be involved in the business of making motorized vehicle batteries from upstream to downstream.

2. PT BRI Syariah (BRIS)

After signing the CMA on Monday (12/10) night, the process of merging three Islamic banks, PT Bank BRI Syariah Tbk (BRIS), PT Bank Mandiri Syariah, and PT Bank BNI Syariah, a state-owned subsidiary is targeted to be completed in February 2021. could be the top 10 largest Islamic banks in the world based on their valuation value, as well as the top 10 banks with the largest assets in the country. In 2025, the merged bank with conservative assumptions can distribute IDR 272 trillion in financing, IDR 355 trillion in deposits with IDR 390 trillion in assets. Referring to the financial statements of the 3 banks until the end of the first semester of 2020, the combined total assets have reached Rp 214.74 trillion. By the end of the year, assets are estimated to grow to Rp 220 trillion-Rp 225 trillion.

3. PT Chandra Asri Petrochemical (TPIA)

To increase working capital, TPIA will issue bonds worth IDR 600 billion. The debt bond entitled Sustainable Bonds III Chandra Asri Petrochemical Phase II Year 2020 is part of the PUB Sustainable Bonds III with a target fund raised of IDR 5 trillion. Bonds worth Rp. 500 billion will be guaranteed on a full commitment basis, while the remaining Rp. 100 billion will be guaranteed on a best effort basis. These bonds have a term of 3 years with a fixed interest rate of 8.20% per annum. The offering period for these bonds will take place on 26-27 October 2020. Then, the allotment date will be on 2 November 2020.

4. PT Kalbe Farma (KLBF)

The company spent Rp19 billion to buy 60% shares of PT Innolab Sains Internasional (ISI) from its subsidiary PT Kalbio Global Medika (KGM). ISI is a joint venture company between HSRI and TTC which provides clinical laboratory examination services for Kalgen Innolab.

5. PT Wintermar Offshore Marine (WINS)

As of August 2020, the company earned a contract of US $ 69.5 million. It is recognized that offshore activities in the oil and gas sector have increased, thereby increasing the company`s operational performance.

C. MARKET STATISTICS

DJIA -157.71 -0.5/% 28679
NASDAQ -12.36 -0.55% 11863
GOLD -32.7 -1.70% 1894.6
*OIL +0.69 +1.75% 40.18*
COAL (Okt/Newcastle) -2.15 -3.78% 54.70
NICKEL -155 -1.02% 15040
*TIN +2.5 +0.01% 18257.5*
*CPO (Dec`) +10 +0.33% 3008*
EIDO -0.02 -0.11% 18.35
*TLK 18.49 (2725) vs 2730 (TLKM)*
US 10yr -0.050 -6.44% 0.7270
INDO 10yr -0.0084 -0.12% 7.0054
*INDO CDS (5yr) +0.126 +0.136% 92.626*
IDR (Spot) 14,725

*IDX Range : 5,095 - 5,180*
*USD/IDR Range: 14,650 - 14,780*

D. STOCK WATCHLIST

BBRI, WSKT, CTRA, PTPP, BBNI, ADHI, MBAP, PGAS, ADRO, BRPT.

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