Indonesia Market Today - 22 October 2020

A. INDONESIA MORNING MARKET REVIEW

Thursday (22/10/2020). Still incomplete talks on the stimulus package proposed by the Speaker of the US House of Representatives Nancy Pelosi pushed down the DJIA by -0.35% overnight amid the drop in commodity prices for Oil by -3.64%, Coal -0.95% & Nickel -0.92% could potentially be a negative sentiment for trading this Thursday. On the other hand, good news came from the strengthening of EIDO by + 2.17% (although yesterday IHSG was closed down slightly by -0.06%) as well as the increase in commodity prices for Gold + 0.99%, Tin + 0.27% & CPO + 1.68% so that it has the potential to push up stock prices below commodities.

B. INDONESIA CORPORATE NEWS

1. PT BTPN Syariah (BTPS)

In the midst of the pandemic, the company recorded a disbursement of financing of Rp. 9.1 trillion as of September 30, 2020, or an increase of 4% compared to the second quarter of 2020. Meanwhile, the ratio of non-performing financing (NPF) was 1.9%, below the industry average. Thus, BTPS posted a net profit in the third quarter of 2020 of Rp 507 billion, an increase of 24.7% compared to the second quarter of 2020 of around Rp 406.6 billion. BTPS CAR is in the position of 43.1% and total assets of IDR 15.5 trillion.

2. PT Sido Muncul Herbal Medicine and Pharmacy Industry (SIDO)

Until the end of quarter 3/2020, the profit for the current period attributable to the owners of the parent company was IDR640.81 billion, or grew 10.78% when compared to the same period in 2019 of IDR578.45 billion. One of the reasons was the increase in SIDO sales in that period by 6.1% compared to the same period in 2019 from Rp2.13 trillion to Rp2.26 trillion.

3. PT Pelayaran Nasional Bina Buana Raya (BBRM)

The company plans to conduct (PMHMETD) or rights issue. The proceeds from this corporate action will be used to pay off the purchase of two vessels, namely MP Perkasa and MP Pride from Marco Polo Offshore Pte Ltd with a total value of USD14 million. This is because the purchase price per ship is USD 7 million, and the Company is required to pay a deposit of USD 350 thousand for each ship before being sent to the company. The company must pay a deposit for the two vessels in the amount of USD700 thousand at the latest 90 working days, from 16 October 2020.

4. PT Perintis Triniti Properti (TRIN)

TRIN`s Debt to Equity Ratio (DER) is projected to drop sharply to 0.74x at the end of 2020 from 1.74x in the period 30 June 2020. This is due to the dilution of TRIN`s ownership in PT Triniti Dinamik to 18.12% from the previous 53 , 37%.

5. PT Mitra Keluarga Karya Sehat (MIKA)

As of the 3rd quarter of 2020, the company recorded a decrease in net profit of 1.19% YoY to Rp522.44 billion. The decrease in net profit was due to lower revenue by 2.81% YoY to Rp2.31 trillion. On the other hand, the company has completed construction of a hospital in Surabaya as a company expansion step this year. In addition, the company is targeting the acquisition of a hospital which is in the process of due diligence. On the other hand, the company also stated that it plans to build two more new hospitals in the first quarter of 2020 in Jabodetabek.

6. PT. Pan Brothers (PBRX)

As of October 21, 2020, * the company discontinued the rating service carried out by Moody`s * where Moody`s downgraded the rating due to incomplete discussions with the banking sector regarding the issuance of new Syndicated Payable which will be used to pay off Syndicated Debt that matures at the end of January 2021, with position per 30 June 2020 amounting to USD 132.3 million, and also Bond payable due on 26 January 2022 with a position as per 30 June 2020 amounting to USD 171.1 million. Meanwhile, PBRX performance fundamentally, the balance of cash and cash equivalents as of June 30, 2020 amounted to USD 40.2 million. He also explained, Moody`s has made two down grades on the basis that there has not been any new financing for debts that will mature in 12-18 months.

C. MARKET STATISTICS

DJIA -97.97 -0.35% 28210
NASDAQ -31.80 +0.33% 11484
*GOLD +18.3 +0.99% 1927.70*
OIL -1.51 -3.64% 40.00
COAL (Nov/Newcastle) -0.55 -0.95% 57.15
NICKEL -147.50 -0.92% 15907
*TIN +50 +0.27% 18727.50*
*CPO (Dec`) +49 +1.68% 2959!!*
*EIDO +0.40 +2.17% 18.85!!*
*TLK 18.47 (2703) vs 2680 (TLKM)*
US 10yr +0.0190 +2.38% 0.7970
*INDO 10yr -0.0356 -0.53% 6.8593!!*
INDO CDS (5yr) +0.355 +0.374% 95.274
*IDR (Spot) 14,632.5*

*IDX Range : 5,049 - 5,133*
*USD/IDR Range: 14,575 - 14,710*

D. STOCK WATCHLIST

ASII, WSKT, INCO, BBNI, ANTM, JPFA, HRUM, TINS, PGAS, LSIP.

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