Indonesia Market Today - 16 October 2020

A. INDONESIA MORNING MARKET REVIEW

Friday (16/10/2020). Factors returning to the increasing spread of Covid-19 in Europe`s largest cities, floating hopes for a stimulus agreement to be reached before the 2020 US Presidential Election in early November and the increase in unemployment claims data to the highest level since August 2020 are the driving factors for DJIA to fall again very slightly on the second day. 3 of -0.07% amidst the decline in EIDO -1.24% and the decline in prices of several commodities such as: Oil -0.39%, CPO -2.48% & Nickel -0.39%. On the other hand, positive sentiment came from the increase in Coal`s price + 2.27%, Gold + 0.38% & Timah + 0.29%, so that it has the potential to push up stocks under these commodities.

BI Records Indonesia`s Foreign Debt Increased at the End of August.

Indonesia`s External Debt (ULN) * as of the end of August 2020 was recorded at USD413.4 billion or around IDR6,076.9 trillion * (1 USD = IDR 14,700), consisting of the public sector (Government and Central Bank) USD203.0 billion and sectors private sector (including BUMN) amounting to USD210.4 billion. Indonesia`s external debt growth in August 2020 was recorded at 5.7% (yoy), higher than the previous month`s 4.2% (yoy).

Government external debt in August 2020 grew up. The position of Government external debt at the end of August 2020 was recorded at USD200.1 billion or grew by 3.4% (yoy), higher than the growth in July 2020 of 2.3% (yoy). Private external debt in August 2020 also increased. August 2020 was recorded at 7.9% (yoy), an increase compared to the growth in July 2020 of 6.2% (yoy). This development was influenced by the growth in external debt of non-financial institution companies (PBLK) and external debt of financial institutions (LK) by 10.3% (yoy) and 0.4% (yoy), respectively.

B. INDONESIA CORPORATE NEWS

1. PT Astra International (ASII)

Car sales under the Astra Group reached 25,799 units in September 2020, an increase of 53.81% compared to 16,773 units in August 2020. Cumulatively, Astra Group sales were 192,217 units in the third quarter of 2020. Meanwhile, domestic market sales in the same period amounted to 372,046 units.

2. PT Waskita Karya (WSKT)

The Company obtained a new contract worth IDR 3.2 trillion in September so that, currently, the Company has pocketed a new contract value of IDR 12.2 trillion. "This value includes several other major infrastructure projects such as the Ciawi - Sukabumi Toll Road, the Pasuruan - Probolinggo Toll Road, the Jakarta Coastal Strengthening, and the Rentang Irrigation Network that have already been acquired." In the fourth quarter, Waskita is targeting additional new contract value from toll road projects in Sumatra, East Kalimantan and the Jakarta area. In addition, Waskita is also participating in the tender process for the development of a commercial center in a country in Southeast Asia with a value of up to IDR 1 trillion.

3. PT Gihon Telekomunikasi Indonesia (GHON)

Until the 3rd quarter of 2020, the company has absorbed a capex of around Rp 50 billion. The funds have been used for tower investment and land leases. This year GHON has budgeted a capex of IDR 150 billion to IDR 200 billion. As of the third quarter, GHON has added leases of around 1,190 with 507 collocations. GHON has also pocketed a total revenue of around Rp. 106 billion in the third quarter.

C. MARKET STATISTICS

DJIA -19.80 -0.07% 28494
NASDAQ -54.86 -0.47% 11713
*GOLD +7.2 +0.38% 1911.90*
OIL -0.16 -0.39% 40.94*
*COAL (Nov/Newcastle) +1.25 +2.27% 56.40!!*
NICKEL -110 0.71% 15412.50
*TIN +52.5 +0.29% 18352.5*
CPO (Dec`) -74 -2.48% 2914
EIDO -0.23 -1.24% 18.34
*TLK 18.93 (2780) vs 2780 (TLKM)*
US 10yr +0.009 +1.25% 0.7310
INDO 10yr -0.0251 -0.36% 6.9899
INDO CDS (5yr) +3.645 +3.57% 98.145
*IDR (Spot) 14,690*

*IDX Range : 5,071 - 5,155*
*USD/IDR Range: 14,630 - 14,770*

D. STOCK WATCHLIST

TBIG, MDKA, MBAP, MILA, INTP, B RI, JPFA, BBNI, GGDM, ANTM.

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