Indonesia Market Today - 29 December 2020

A. INDONESIA MORNING MARKET REVIEW

Tuesday (29/12/2020). The signing of the Covid-19 aid bill worth $ 900 billion into law is driving the DJIA to strengthen again by + 0.68% and if combined with the strengthening of EIDO by + 2.24%, it has the potential to become a catalyst for the strengthening of the JCI this Tuesday. In addition, the strengthening of Coal`s price + 1.01% has the potential to push up shares under this commodity.

* However, investors should not be too complacent and lulled by this strengthening condition because early in 2021, it is clear that the Tourism and Aviation Sector will be hit due to the closure of all international flights to Indonesia and the plan to implement strict PSBB in DKI Jakarta, as the center of Indonesia`s economy, if people with Covid19 increase *. Both of these things are bad signals for the market.

Due to the New Coronavirus, RI Shuts its Doors for Foreigners 1-14 January 2021.

"The limited cabinet meeting on December 28, 2020 decided to temporarily close, to temporarily close, from January 1 to 14, 2021, the entry of foreign nationals or foreigners from all countries to Indonesia," said Foreign Minister Retno Marsudi.

Entrepreneurs Are Concerned About DKI Plans To Pull Corona Emergency Brakes

The DKI Jakarta Provincial Plan opens up opportunities to withdraw the emergency brake for handling the corona virus by tightening the PSBB policy in the capital, making entrepreneurs worried about this discourse. The General Chairperson of the DPD HIPPI of DKI Jakarta Province said * if conditions return to the way they used to be, it will make economic activity more limited and stagnant *.

C. INDONESIA CORPORATE NEWS

1. PT Sampoerna Agro (SGRO)

The company will do replanting for next year it could reach around 4,000-6,000 hectares, while the new planting is 1,000-2,000 hectares. So the combined total of new planting and replanting will be between 5,000- 8,000 hectares in 2021. The company prepares a capex of IDR 400 billion to IDR 600 billion in 2021, which is mostly used for planting programs. The company targets production growth in 2021 to reach around 10% - 20% compared to the realization in 2020. If this year`s production growth is very good and the trend of strengthening prices continues, the company opens opportunities to build a new palm oil factory in 2022.

2. PT Inti Bangun Sejahtera (IBST)

The company is optimistic that in 2020 the operating income will reach more than Rp 1.1 trillion. Meanwhile, the net profit is targeted to reach more than Rp 100 billion. On the other hand, in 2021 the company will budget a capex of IDR 1 trillion to support the construction and purchase of telecommunications towers and fiber optic (FO).

3. PT Terregra Asia Energy (TGRA)

TGRA`s work on the PLTS project in Australia is hampered due to the lack of funding. Furthermore, * if the company does not succeed in obtaining financing for these projects, it will be forced to stop * the construction process.

C. MARKET STATISTICS

*DJIA +204.1 +0.68% 30404*
*NASDAQ +94.7 +0.74% 12899*
GOLD -6.6 -0.35% 1876.60
OIL -0.52 -1.08% 47.71
*COAL (Jan`21/Newcastle) +0.85 +1.01% 85.35*
NICKEL Closed 17032.5
TIN Closed 20025
CPO (Jan`21) -29 -0.75% 3825
*EIDO +0.52 +2.24% 23.72*
TLK 24.33 (3444) vs 3430 (TLKM)
US 10yr +0.0070 +0.76% 0.9330
INDO 10yr -0.0176 -0.29% 6.1518
INDO CDS (5 yrs) Uncj 68.793
IDR (Spot) 14,155

*IDX Range : 6,050 - 6141*
*USD/IDR Range: 14,090 - 14,260*

D. STOCK WATCHLIST

ERAA, PURA, WSBP, PGAS, AALI, TLKM, LSIP, ANTM, BBNI, UNTR.

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