Indonesia Market Today - 26 October 2020

A. INDONESIA MORNING MARKET REVIEW

Monday (26/10/2020). JCI again strengthened in the third week by + 0.19% accompanied by a Net Sell of Foreign Investors of Rp -989.9 billion. At the beginning of this week, Monday, JCI is expected to flatten in a limited range along with the DJIA`s super thin drop of -0.10% driven by the pending action to approve the US Economic Stimulus Package as well as corrections in commodity prices such as: Oil -2.12%, Gold -0.06%, Nickel -1.20% & Tin -1.02%. On the other hand, positive sentiment came from the strengthening of EIDO + 1.07%, Coal + 1.05% & CPO + 0.36% so that it has the potential to push up stocks under these commodities.

World Bank Revised Upward Oil Price Estimates 2020-2021.

Quoting the World Bank`s report in the Commodity Markets Outlook in October 2020, the World Bank predicts that oil prices will reach an average price of US $ 41 per barrel in 2020 before finally rising to US $ 44 per barrel in 2021. The projection is up from the April 2020 estimate of US $ 35 per barrel. for this year and US $ 42 per barrel for the 2021 average.

Regarding the discourse on increasing excise taxes, GAPPRI asked the government for this matter.

The Association of Indonesian Cigarette Manufacturers Association (GAPPRI) is of the opinion that the circulating issue in the media regarding the increase in tobacco excise tax (CHT) by 17% next year should be treated with caution so as not to cause a commotion. * The reason is, until now the source of the information is not clear *.

B. INDONESIA CORPORATE NEWS

1. PT Aneka Tambang (ANTM)

The company is considering increasing its stake in Weda Bay to 40% from its current 10% share and has contacted an investment bank to discuss a potential share purchase from Tsingshan Holding Group. Meanwhile, the acquisition value is estimated at US $ 300 million.

2. PT Aneka Tambang (ANTM)

The company recorded unaudited gold sales of 6,967 kilograms or equivalent to 223,994 troy ounces where this realization grew significantly by 147% compared to the same period in 2019 reaching 2,818 kilograms or equivalent to 90,600 troy ounces. Thus, until the end of the 3rd quarter of 2020, the company has booked unaudited gold sales of 14,882 kilograms or the equivalent of 478,467 troy ounces. Meanwhile, the company recorded unaudited ferronickel production of 6,371 tons of nickel in ferronickel (TNi), a 6% growth in the same period in 2019 of 6,035 TNi. ANTM`s unaudited ferronickel sales in the same period were recorded at 6,462 TNi. So that until the 3rd quarter of 2020 the production and sales of unaudited ferronickel were 19,133 TNi and 19,507 TNi, respectively. Then, for nickel ore, unaudited nickel ore production reached 1.49 million wet metric tons (wmt), a 100 percent growth compared to nickel ore production in the previous quarter of 745,000 wmt.

3. PT Nippon Indosari Corpindo (ROTI)

Until the end of quarter 3/2020, the company recorded net sales of Rp2.4 trillion or an increase of Rp766 billion during the period July - September 2020. Meanwhile, EBITDA and Net Profit attributable to the Parent Entity Owner were recorded at Rp308.6 billion and Rp127, respectively. , 2 billion. This achievement was supported by good performance in each sales channel. The traditional channel (General Trade) posted sales of IDR 701 billion by the end of quarter 3/2020, growing 22% YoY, as a result of implementing a strategy during the Covid-19 pandemic to focus on potential residential areas market by introducing product ordering modes via WhatsApp and Chatbot. Meanwhile, the modern channel (Modern Trade) until the end of quarter 3/2020 achieved sales of IDR 1,673 billion and remains the largest contributor to the Company`s sales. During the Covid-19 pandemic, modern channels were able to maintain sales, especially the July-September 2020 period of IDR 505 billion which was relatively stable compared to the April-June 2020 period supported by effective promotional and marketing initiatives.

C. MARKET STATISTICS

DJIA -28.09 -0.10% 28335*
*NASDAQ +42.28 +0.37% 11548*
GOLD -1.2 -0.06% 1903.40
OIL -0.86 -2.12% 39.78
*COAL (Nov/Newcastle) +0.60 +1.05% 58.00*
NICKEL -190 -1.20% 15607.5
TIN -190 -1.02% 18412.5
*CPO (Dec`) +11 +0.36% 3027!!*
*EIDO +0.20 +1.07% 18.90*
*TLK 18.04 (2645) vs 2630 (TLKM)*
US 10yr -0.0070 -0.83% 0.8410
INDO 10yr +0.0007 +0.01% 6.8630
*INDO CDS (5yr) -0.890 -0.938% 93.995*
IDR (Spot) 14,660

*IDX Range : 5,076 - 5,161*
*USD/IDR Range: 14,610 - 14,740*

D. STOCK WATCHLIST

ASII, GGRM, HRUM, ERAA, BSDE, JSKY, MBAP, ADHI, PWON, HOKI.

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