Indonesia Market Today - 6 November 2020

A. INDONESIA MORNING MARKET REVIEW

Friday (06/11/2020). The Dow Jones index strengthened quite sharply on the 4th day of +542.5 (+ 1.34%) * so that for 4 consecutive days the DJIA strengthened very sharply by +1888.4 points (+6.34%) * where the strengthening has the potential to be * driving JCI strengthening towards the level 5300 * in trading this Friday. On the other hand, * JCI for 4 days has just increased by +132.07 points (+2.6%) * as Indonesia has officially entered into a recession and the results of the presidential election in the US are unclear. Furthermore, the opportunity for JCI to continue to strengthen this Friday is also driven by rising commodity prices such as: Coal + 1.40%, Nickel + 0.99%, Timah + 0.19% & CPO + 1.81% so that it has the potential to push up shares under these commodities. On the other hand, after a few days ago people who were infected with Covid19 were in the 2000s level, then Wednesday it rose to the 3000 level, * Thursday there was another increase of people infected with Covid19 in the 4000`s level *. Does that mean that during the holidays the samples taken decrease and when after the holidays the samples taken again increase and simultaneously people affected by Covid19 also increase again.

This is a source of contributor to Indonesia`s economic contraction in the third quarter of 2020

The manufacturing sector in the third quarter of 2020 recorded a contraction of minus 4.31% yoy. The transportation and warehousing sector in the third quarter of 2020 recorded a growth of minus 16.70% yoy. The trade sector in the third quarter of 2020 was recorded at minus 5.03% yoy.

The realization of the PEN program budget was only 51.9% until the end of October 2020

The Ministry of Finance (Kemenkeu) reported that until 26 October 2020, the realization of the PEN program was IDR 361.5 trillion, equivalent to 51.9% of the total budget of IDR 695.2 trillion. This means, in about 2 months, the government must channel funds amounting to Rp. 333.7 trillion so that it can be absorbed 100%.

B. INDONESIA CORPORATE NEWS

1. PT MNC Investama (BHIT)

The bondholders have approved the exchange offer proposed by the company to convert US $ 231 million of senior bonds. Bondholders have 2 options to exchange these global bonds. First, to exchange new BHIT shares at an exchange rate of 8,267,052 shares per US $ 100,000 of the principal amount of the bonds. This price is equivalent to a conversion price of IDR 173 per share using an exchange rate of IDR 14,302. With this exchange rate, the bonds worth US $ 213 million is equivalent to IDR 3.3 trillion. The second option is to exchange the senior notes with new bonds issued by BHIT at an exchange rate of US $ 100,000 for every US $ 100,000 of the principal amount of the bonds. The new bonds offer a fixed coupon of 1% per annum, plus a variable coupon of cash dividends that BHIT received from PT Global Mediacom Tbk. and PT MNC Kapital Indonesia Tbk. The new bonds have a term of five years. The impact of the corporate action will reduce BHIT`s main debt from US $ 231 million to US $ 81 million or a decrease of 64.5%. Meanwhile, parent equity increased from Rp. 11.6 trillion to Rp. 13.8 trillion, an increase of 18.1%.

2. PT Bukit Asam (PTBA)

Until the end of quarter 3/2020, the company posted revenue of IDR 12.85 trillion, down 20.95% yoy from the previous IDR 16.26 trillion. Meanwhile, until the end of quarter 3/2020, * the company posted a net profit of IDR 1.73 trillion or a decrease of 44.27% yoy * from the previous IDR 3.1 trillion per quarter III / 2019.

3. PT Garudafood Putra Putri Jaya (GOOD)

Until the end of quarter 3/2020, the company posted a decline in sales of 9.51% yoy to IDR 5.74 trillion. Meanwhile, until the end of quarter 3/2020, * the company posted a decrease in net profit of 28.8% yoy * to Rp211.94 billion.

4. PT XL Axiata (EXCL)

Until the end of quarter 3/2020, the company posted revenue of IDR 19.66 trillion, or an increase of 5% yoy from the previous IDR 18.73 trillion. Meanwhile, until the end of quarter 3/2020, * the company posted a net profit attributable to the parent entity of Rp 2.07 trillion or a very sharp increase of 316.32% yoy * compared to the same period in 2019 of Rp. 498 billion.

5. PT Jasa Armada Indonesia (IPCM)

Until the end of quarter 3/2020, * the company posted a net profit of Rp 69.7 billion or an increase of 1.3% * from Rp 68.8 billion in the same period in 2019. Meanwhile, until the end of quarter 3/2020, the company recorded an increase an increase in revenue of 3.8% to IDR 510.2 billion compared to the same period in 2019 of IDR 491.7 billion.

C. MARKET STATISTICS

*DJIA +542.5 +1.95% 28390!!!*
*NASDAQ +300.1 +2.59% 11890!!*
*GOLD +47.9 +2.52% 1951.5!!*
OIL -0.47 -1.20% 38.53
*COAL (Nov/Newcastle) +0.85 +1.40% 61.45!!*
*NICKEL +152.5 +0.99% 15572.5!!*
*TIN +35 +0.19% 18235*
*CPO (Dec`) +60 +1.81% 3367!!*
*EIDO +0.93 +4.80% 20.32!!*
*TLK 19.22 (2765) vs 2770 (TLKM)*
US 10yr -0.000 -0.01% 0.7680
INDO 10yr +0.065 +0.98% 6.674
*IDR (Spot) 14,380*

*IDX Range : 5,215 - 5,300*
*USD/IDR Range: 14,300 - 14,440*

D. STOCK WATCHLIST

BBRI, SMGR, ICBP, ACES, TLKM, JPFA, BBCA, ASII, BMRI, BRIS.

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