Indonesia Market Today - 23 December 2020

A. INDONESIA MORNING MARKET REVIEW

Wednesday (23/12/2020). The fall of the JCI was purely due to the sharp increase in quite a number of shares that was not comparable and was not supported by the fundamental performance of these stocks. There are pharmaceutical stocks whose PER has gone up hundreds of times, and there are even pharmaceutical stocks whose PER minus hundreds of times have continued to "go up" and have not even been suspended. There is another bank whose PBV is almost equal to BBCA, which continues to rise on the pretext of a merger. There are even issuers whose losses are trillions of rupiah, their equity is minus trillions of rupiah and the DER reaches hundreds of times and paying the fuel debt alone needs restructuring, but it is expected to increase to the seventh point.

So it is only natural that the JCI has fallen and even fell back, there is no need to question, as this Wednesday the JCI is estimated to have the opportunity to fall again as the DJIA has fallen by -0.67% and the sharp EIDO fall of -4.46% amid the emergence of a new variant of Covid19 which spreads much faster.

The opportunity for the JCI to fall on the last day of trading this week was also driven by a sharp drop in prices for several commodities such as: Nickel -3.65%, Oil -1.84% & Gold -0.90% so investors need to be aware of selling pressure on commodity-based stocks.

KEJAGUNG: Asabri`s loss is IDR 17 trillion

The loss is thought to have a similar pattern to that of PT Asuransi Jiwasraya. Attorney General ST Burhanuddin said that his party would handle the Asabri case because it was closely related to the Jiwasraya case, both in terms of the position of the case and the alleged potential suspects. In the Jiwasraya case, the Attorney General`s Office already has a lot of supporting evidence that can be considered in developing the handling of the Asabri case. * The Attorney General revealed that the suspect`s allegation refers to the private sector and former directors of Asabri *.

OJK Prediction, Credit Distribution Recovery is Still Heavy

The recovery of lending in 2021 is still quite heavy. For the end of 2020, credit growth is predicted to be around 3%. The Financial Services Authority (OJK) estimates that credit growth in 2021 will be around 6% - 7%. Lower than in normal conditions about 8%. Meanwhile, OJK noted that the financial gap that occurred in Indonesia reached USD165 billion, because the financial support from banks and other financial institutions has not been able to be reached.

B. INDONESIA CORPORATE NEWS

1. PT Tower Bersama Infrastructure (TBIG)

The Company acquired as many as 3,000 towers belonging to * PT Inti Bangun Sejahtera Tbk (IBST) * worth IDR 3.97 trillion or US $ 280 million. The transaction settlement is expected to be completed by the end of quarter I / 2021. With this acquisition, the company`s tower portfolio reaches 19,000 sites. On the other hand, the company has budgeted a capex of IDR 2 trillion in 2021.

2. PT Panca Mitra Multiperdana (PMMP)

The company targets sales growth of 11% in 2021 to US $ 190 million or around Rp2.69 trillion (US $ = Rp 14200). The construction of the 8th factory is planned to start in January 2021. The land has also been prepared. Through the construction of this new factory, the company plans to increase sales volume by 11% to around 20,000 tons and increase sales value by 11% to US $ 190 million in 2021. So far, the company`s performance until June 2020, sales reached US $ 83 million or an increase of 12, 6% yoy increased to US $ 9.3 million compared to the same period in 2019 of US $ 74 million. In addition, the company`s sales value is also targeted to reach US $ 170 million, an increase of 18.8% compared to the same period in 2019 of US $ 143 million.

3. PT Vale Indonesia (INCO)

The company allocates a capex of US $ 130 million in 2021 or higher than the 2020 projection of around US $ 120 million. The capex in 2021 will be used for furnace reconstruction and renovation of mining heavy equipment and mine development.

4. PT Waskita Karya (WSKT)

The company has budgeted a capex of IDR 10 trillion in 2021 or equivalent to the capex in 2020. The use of the capex is around 80% or IDR 8 trillion to complete the investment toll road section under PT Waskita Toll Road, which is currently under construction. As of October 2020, the company has realized a capex of around 80% of the IDR 10 trillion budget aimed at funding toll road projects. Meanwhile, the total new contracts received by WSKT until November 2020 reached IDR 15.6 trillion, reflecting the achievement of 60% of the IDR 26 trillion target.

C. MARKET STATISTICS

*DJIA -200.9 -0.67% 30015*
NASDAQ +65.4 +0.51% 12807
*GOLD -16.9 -0.90% 1864.50*
*OIL -1.29 -2.63% 47.79*
COAL (Jan`21/Newcastle) Unch 84.70
*NICKEL -632.50 -3.65% 16710!!*
TIN +22.5 +0.11% 19975
CPO (Jan`21) +17 +0.47% 3663
*EIDO -1.07 -4.46% 22.81!!!*
TLK 23.70 (3366) vs 3360 (TLKM)
US 10yr -0.0230 -2.44% 0.9180
INDO 10yr +0.0324 +0.51% 6.1769
INDO CDS (5 yrs) +2.576 +3.829% 69.864
IDR (Spot) 14,205

*IDX Range : 5,973 - 6,064*
*USD/IDR Range: 14,140 - 14,270*

D. STOCK WATCHLIST

PURA, JSKY, SRTG, TBIG, ISAT, MDKA, UNTR, AKRA, WIKA, ADRO.

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