Indonesia Market Today - 21 October 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (21/10/2020). The almost agreement on a stimulus package to reduce the impact of the Covid19 pandemic between the Speaker of the US House of Representatives Nancy Pelosi and US Treasury Secretary Steven Mnuchin was the driving force for the DJIA to turn higher by + 0.44% in trading Tuesday and when combined with the increase in commodity prices such as: Oil + 1.96%, Gold +0.13 %, CPO + 2.12%, Tin + 0.43%, Nickel + 2.54% and EIDO + 0.16% have the potential to be positive catalysts driving the strengthening of the JCI in trading this Wednesday.

B. INDONESIA CORPORATE NEWS

1. PT PP (PTPP)

Until the end of the 3/2020 quarter, the company has booked new contracts worth Rp 11.8 trillion. With this achievement, PTPP has realized 47.2% of the target set in 2020 worth IDR 25 trillion. When compared with the acquisition of new contracts in the same period in 2019 valued at IDR 23 trillion, PTPP`s achievement decreased by 48.69%. In addition to lowering the target for new contracts to Rp25 trillion from the previous Rp43 trillion, PTPP also anticipates a decline in profit, which this year is estimated to drop to Rp122 billion from the previous target of Rp1.4 trillion.

2. PT PP Properti (PPRO)

The company synergizes with PTPP to develop the Mandalika-NTB Circuit. Meanwhile PPRO is building a 4-star hotel called Prime Park Hotel & Convention Lombok. The hotel, with an investment of Rp. 390 billion, will have 150 rooms and ballrooms with a capacity of 1,000 people.

3. PT Buana Lintas Lautan (BULL)

The company has absorbed capex worth US $ 150 million by the third quarter of 2020 to buy eight oil tankers.

4. PT Phapros (PEHA)

The company through its subsidiary, PT Lucas Djaja, exports a number of products, such as antibiotics and prescription corticosteroid drugs to Afghanistan and Myanmar. Its export value is estimated at US $ 120,000 or more. This export is expected to boost the company`s export revenue to more than 5% this year. optimistic about posting revenue and net profit growth of up to 10% each in 2020.

5. PT Indika Energy (INDY)

The company issued foreign currency bonds with a value of up to US $ 450 million or equivalent to Rp6.62 trillion with a coupon of 8.25% which will mature in 2025. The company through its subsidiary, PT Indika Energy Capital IV Pte Ltd., will list the bonds in Singapore. Exchange Securities Trading Limited. The proceeds from the bond issuance are used to refinance the US $ 265 million bond that will mature in 2022 with a 6.25 percent coupon issued by Indika Energy Capital II Pte. Ltd., and refinancing a portion of the US $ 500 million outstanding bond due in 2023, worth US $ 285 million with a 6.375% tenor issued by Indo Energy Finance II B.V.

C. MARKET STATISTICS

DJIA +113.37 +0.40% 28308
NASDAQ +37.51 +0.33% 11516
GOLD +2.5 +0.13% 1909.40
OIL +0.8 +1.96% 41.51
COAL (Nov/Newcastle) -0.45 -0.77% 57.70
NICKEL +397.50 +2.54% 16055!!
TIN +80 +0.43% 18677
CPO (Dec`) +60 +2.12% 2885!!
EIDO +0.03 +0.16% 18.45
TLK 18.48 (2710) vs 2670 (TLKM)
US 10yr +0.0360 +4.73% 0.7970
INDO 10yr -0.0368 -0.53% 6.8949!!
INDO CDS (5yr) +0.914 +0.972% 94.919
IDR (Spot) 14,657.5

IDX Range      : 5,057 - 5,141
USD/IDR Range: 14,590 - 14,730

D. STOCK WATCHLIST

ASII, SMGR, TBIG, UNVR, ERAA, BRIS, HRUM, BNLI, INCO, UNTR.

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