Indonesia Market Today - 20 October 2020

A. INDONESIA MORNING MARKET REVIEW

Tuesday (20/10/2020). The uncertainty of the fate of Nancy Pelosi`s stimulus package a day before the deadline pushed the DJIA to a sharp drop of -1.44% overnight which has the potential to become a negative sentiment for trading on the Indonesia Stock Exchange this Tuesday amid falling Oil prices -0.17%, Nickel -0.11% & CPO -2.84%. On the other hand, positive sentiment for JCI came from the strengthening of EIDO + 0.33% as well as the strengthening of several commodity prices such as: Coal + 1.13%, Timah + 1.4% & Gold + 0.21% so that it has the potential to push up stocks below these commodities.

Japanese Contractors Are Not Interested Again, MRT Project Phase 2A Is Delayed.

The construction of MRT Jakarta Phase 2A is in danger of being delayed due to failed tenders in a number of work packages in segment 2 (Harmoni-Kota). This is particularly so for the procurement of rolling stock (trains) that the Japanese contractor did not even pay attention to. Initially the Phase 2A MRT Jakarta project, especially segment 2 (Harmoni-Kota) was targeted for completion in March 2026. However, it has now been delayed to August 2027.

B. INDONESIA CORPORATE NEWS

1. PT Aneka Tambang (ANTM)

The company, PLN, and Pertamina will work together to build a battery industry joint venture (JV) for components to power electric cars. The consortium company is called Indonesia Battery Holding. The JV will also create partnerships with Chinese and Korean companies on two projects worth USD 12 billion. He added that ANTM will also work on electric car battery projects worth around USD2 billion-USD3 billion.

2. PT Sarana Meditama Metropolitan (SAME).

SAME or Omni Hospitals announced plans to take over all shares of PT Elang Medika Corpora (EMC), a subsidiary of PT Elang Mahkota Teknologi Tbk. (EMTK) worth IDR1.25 trillion. The total number of EMC shares to be taken over by Omni Hospitals amounted to 1,254,899 shares or the equivalent of 99.99% of the paid-up capital and placed in EMC where the transaction value is equivalent to 225% of the company`s total equity. To finance the acquisition, SAME will issue new shares with pre-emptive rights or a rights issue. The company will issue as many as 10.3 billion new company shares with a nominal value of IDR 20 per share.

3. PT Itama Ranoraya (IRRA)

Until quarter 3/2020, the company posted revenue of IDR 141.06 billion, an increase of 9.4% compared to the same period in 2019 of IDR 128.9 billion. The increase in income was supported by the increasing demand for medical devices amid the Covid-19 pandemic, namely non-electromedical medical devices (syringes), which increased 19.3% yoy to Rp 33.14 billion. Meanwhile, revenue from diagnostic in vitro products grew 6.5% yoy to Rp 107.77 billion. IRRA`s new product, USG equipment, also received very good reception with a contribution reaching 21% of total sales. IRRA`s net profit until quarter 3/2020 rose sharply by 475.3% yoy, from Rp 6.17 billion to Rp 35.47 billion. The increase was driven by additional income in the other income accounts from the increase in share prices resulting from the buyback. In 2020, IRRA targets net profit from its core business to grow above 20% or reach IDR 40 billion.

4. PT Arwana Citramulia (ARNA)

Until the 3rd quarter of 2020, the company posted a profit for the current period attributable to the parent owner, aka a net profit of IDR 221.50 billion, up 38.31% compared to the same period in 2019 of IDR 160.13 billion. However, until the 3rd quarter of 2020, sales actually fell 1.18% to Rp 1.61 trillion, compared to net sales in the same period in 2019 of Rp 1.63 trillion.

5. PT Indocement Tunggal Prakarsa (INTP)

Until the third quarter of 2020, the company posted domestic sales of around 11.7 million tons. The additional sales made INTP cement sales to 11.7 million tonnes YTD by the end of the third quarter of 2020 or 8.59% lower than the same period in 2019 of 12.8 million tonnes.

C. MARKET STATISTICS

DJIA -410.8 -1.44% 28195
NASDAQ -192.6 -1.65% 11478
*GOLD +4 +0.21% 1906.90*
OIL -0.07 -0.17% 40.71
*COAL (Nov/Newcastle) +0.65 +1.13% 58.15!!*
NICKEL -17.5 -0.11% 15657.5
*TIN +257.5 +1.40% 18597.50
CPO (Dec`) -83 -2.84% 2838
*EIDO +0.06 +0.33% 18.42*
*TLK 18.50 (2720) vs 2710 (TLKM)*
US 10yr +0.0170 +2.28% 0.7610
*INDO 10yr -0.0383 -0.55% 6.9317*
*INDO CDS (5yr) -0.808 -0.852% 94.005*
IDR (Spot) 14,707.5

*IDX Range : 5,087 - 5,172*
*USD/IDR Range: 14,645 - 14,780*

D. STOCK WATCHLIST

ANTM, BBNI, BSDE, PGAS, INCO, BBRI, CTRA, WIKA, ASII, SMRA.

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