Indonesia Market Today - 11 November 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (11/11/2020). The trend of DJIA strengthening rate continued last night at + 0.90% where the strengthening of the DJIA has the potential to become a positive sentiment * driving JCI to regain its strength to reach the level of 5500 this Wednesday *. Positive sentiment driving JCI strengthening also came from rising commodity prices such as: Oil + 3.37%, Nickel + 0.74%, Coal + 0.40% & Gold + 0.36% so that it has the potential to push up stocks below these commodities.

B. INDONESIA CORPORATE NEWS

1. PT Gudang Garam (GGRM)

The company formed a granddaughter engaged in the toll road sector named PT Surya Kertaagung Toll (SKT). The establishment of PT SKT is to expand the company`s business fields in the construction sector such as upgrading, maintenance and repair of roads, highways and toll roads, as well as bridges and flyovers. Meanwhile, GGRM owns 499,999 shares or 99.9% in PT Surya Kerta Agung, which established PT SKT. Judging from the capital structure, PT SKT has an authorized capital of IDR 1.2 trillion. The issued and paid-up capital was recorded at IDR300 billion or as many as 300 thousand shares with a nominal value of IDR1 million per share.

2. PT Semen Baturaja (SMBR)

Until the end of quarter 3/2020, the company posted revenue of IDR 1.15 trillion, or a decrease of 19.18% compared to the same period in 2019 of IDR 1.42 trillion. Meanwhile, until the end of quarter 3/2020, * the company posted a net loss attributable to the parent entity of Rp. 112.60 billion or a super sharp drop of -595.60% YoY * because in the same period of 2019 the company still booked a net profit of Rp 22.72. billion.

3. PT Indocement Tunggal Prakarsa (INTP)

Until the end of quarter 3/2020, * the company posted a net profit for the period attributable to the owners of the parent entity amounting to Rp1.11 trillion or a decrease of 5.02% YoY * from the previous position of Rp1.17 trillion. Meanwhile, until the end of the 3/2020 quarter, the company posted a decline in revenue of 10.56% YoY to IDR10.14 trillion from IDR11.34 trillion in the same period last year. Meanwhile, the company posted a decline in cement sales of around 11.5% in October 2020 while industrial sales growth fell by 15%. Towards the end of this year, cement sales are not expected to recover at a significant rate. This is because the rainy season that is anticipated every December and the shift in the Eid holidays at the end of the year are several things that will hamper the rate of cement consumption. In addition, the implementation of Pilkada and rampant demonstrations will also affect cement sales performance. The company estimates that in 2020 cement sales will decrease -9% to -11%.

4. PT Diamond Food Indonesia (DMND)

Until the end of quarter 3/2020, the company posted a decrease in DMND revenue of 12,% YoY to Rp 4.45 trillion. Meanwhile, until the end of quarter 3/2020 *, the company posted a decrease in net profit of 35% YoY * to Rp 165 billion.

5. PT Cisadane Sawit Raya (CSRA)

Until the end of quarter 3/2020, the company posted revenue of IDR 451.24 billion, an increase of 20.6% YoY from the same period in 2019 of IDR 374.25 billion. As a result, until the end of quarter 3/2020, * the company posted a sharp increase in net profit of 360.17% YoY * to Rp 64.01 billion.

6. PT Adi Sarana Armada (ASSA)

The company will hold a limited public offering to shareholders for PMHMETD 1 aka rights issue of 600 million convertible bonds with a principal amount of Rp 450 billion. Each holder of 453 old shares whose names are registered in the ASSA shareholder register as of January 7, 2021, is entitled to receive 80 Pre-emptive Rights. Meanwhile, every 1 HMETD entitles the holder to purchase 1 unit of convertible bonds at an exercise price of IDR 750 per 1 convertible bond, which must be paid in full at the time of submitting the Preemptive Rights exercise order. The amount of funds that will be received by ASSA in this PMHMETD I is IDR 450 billion. The convertible bonds in this PMHMETD are issued scripless. The convertible bonds can be converted at their nominal value, which will be offered at a conversion price of Rp 750 per share.

C. MARKET STATISTICS
*DJIA +262.9 +0.90% 29420!!*
NASDAQ -159.9 -1.37% 11553
*GOLD +6.7 +0.36% 1872.20*
*OIL +1.35 +3.37% 41.37!!*
*COAL (Nov/Newcastle) +0.25 +0.40% 62.30*
*NICKEL +117.5 +0.74% 15907.5*
TIN -35 -0.19% 18282.5
CPO (Dec`) -8 -0.23% 3394
*EIDO +0.55 +2.60% 21.74!!*
*TLK 20.16 (2835) vs 2860 (TLKM)*
*US 10yr +0.0140 +1.46% 0.9720*
INDO 10yr +0.0165 +0.25% 6.6481*
*INDO CDS (5 yrs) +1.217 +1.71% 72.399*
*IDR (Spot) 14,057.5*

*IDX Range : 5,413 - 5,500*
*USD/IDR Range: 13,980 - 14,120*

D. STOCK WATCHLIST

BBNI, BSDE, GGRM, ADHI, PGAS, WSKT, ASII, PWON, INTP, JSMR, BRIS.

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