Indonesia Market Today - 27 October 2020

A. INDONESIA MORNING MARKET REVIEW

Tuesday (27/10/2020). The impact of the sharp increase in people affected by Covid19 and the stagnation of stimulus package talks ahead of the US Presidential Election caused the DJIA to drop quite sharply by -2.29%, the lowest daily decline since September 3 and the first closing level below 28,000 since October 6 and when combined with the EIDO drop -0.32 %, falling commodity prices for Oil by -3.07% and Timah -2.02% have the potential to become a negative sentiment for trading this Tuesday. On the other hand, positive sentiment came from the strengthening of Coal + 0.95% & CPO + 2.67%, which has the potential to push up stocks under these commodities.

B. INDONESIA CORPORATE NEWS

1. PT Astra International (ASII)

Until quarter 3/2020, the company posted revenue of IDR 130.34 trillion or a 26.37% decrease from IDR177.04 trillion in the same period in 2019. Meanwhile, until the end of quarter 3/2020, the company booked a profit attributable to the owner of the parent entity of IDR 14, 03 trillion or down 11.53% from Rp15.86 trillion in the same period in 2019.

2. PT Chandra Asri (TPIA)

Until the end of quarter 3/2020, the company posted a decline in revenue of 8.62% YoY to US $ 1.27 billion. Meanwhile, in the third quarter of 2020 in particular, the company achieved EBITDA and net profit of US $ 61 million and US $ 21 million, respectively, compared to EBITDA of US $ 18 million and a net loss of US $ 22 million in the previous quarter.

3. PT Astra Agro Lestari (AALI)

Until the end of quarter 3/2020, the company posted a profit attributable to company owners of Rp. 582.54 billion, an increase of 423.95% compared to the same period in 2019 of Rp. 111.18 billion. Until the end of quarter 3/2020, the company recorded a net income of Rp. 13.32 trillion, an increase of 7.56% compared to the same period in 2019 of Rp. 12.38 trillion.

4. PT United Tractors (UNTR)

Until the end of quarter 3/2020, the company posted a decrease in net profit of 38% YoY to IDR 5.3 trillion. Meanwhile, until the end of quarter 3/2020, the company posted a consolidated net income of IDR 46.5 trillion, down 29% from IDR 65.6 trillion in quarter III / 2019.

5. PT United Tractors (UNTR)

In September 2020, in the heavy equipment business line, the company sold 148 units, up 41% from August 2020 data of 105 units. If accumulated, the total Komatsu heavy equipment sold by UNTR reached 1,191 units, down 53.62% compared to the same period in 2019 of 2,568 units. During 2020 the company targets to be able to sell 1,300-1,400 units of heavy equipment. That means, UNTR has met 85% -91% of the sales target of the installed heavy equipment. Growth also occurs in the coal sales segment through its subsidiary, PT Tuah Turangga Agung. As of September 2020, Tuah Turangga Agung sold 418,000 tonnes of coal, an increase of 2.7% MoM, consisting of 330,000 tonnes of thermal coal and 88,000 tonnes of coking coal.

Meanwhile, coal sales until the end of quarter 3/2020 reached 7.14 million tons or an increase of 10.65% YoY. Meanwhile, the gold sales business is by a subsidiary, PT Agincourt Resources. In September 2020, gold sales through the Martabe gold mine amounted to 22,000 ounces, stable from the achievement in August 2020 which was also 22,000 tonnes.

During the first six months of 2020, realization of UNTR`s gold sales reached 256,000 ounces, down 16.4% from sales in the same period the previous year which reached 306,200 ounces.

6. PT Diamond Food Indonesia (DMND)

The company recorded a total revenue of IDR 4.44 trillion in the third quarter of 2020 or a decrease of 11.97% when compared to the same period in 2019 of IDR 5.05 trillion. In line with the decline in revenue, the company`s net profit as of September 2020 also decreased by 36.92% compared to the same period in 2020 to IDR 160.36 billion from IDR 254.22 billion.

C. MARKET STATISTICS

DJIA -650.1 -2.29% 27685
NASDAQ -189.3 -1.64% 11358
*GOLD +0.36 +0.02% 1903.90*
OIL -1.22 -3.07% 38.56
*COAL (Nov/Newcastle) +0.60 +1.05% 58.00*
*NICKEL +2.5 +0.02% 15610*
TIN-372.5 -2.02% 18040
*CPO (Dec`) +81 +2.67% 3109!!*
EIDO -0.06 -0.32% 18.84
*TLK 17.92 (2625) vs 2650 (TLKM)*
US 10yr -0.040 -4.76% 0.8010
INDO 10yr +0.0075 +0.11% 6.8705
INDO CDS (5yr) +2.349 +2.499% 96.344
IDR (Spot) 14,650

*IDX Range : 5,096 - 5,181*
*USD/IDR Range: 14,580 - 14,710*

D. STOCK WATCHLIST

BBRI, PGAS, HRUM, LSIP, JSKY, BBCA, MAPI, WIKA, SMGR, TBIG

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