Indonesia Market Today - 5 January 2021

A. INDONESIA MORNING MARKET REVIEW

Tuesday (05/01/2021). The excitement of trading in early 2021 did not occur on Wall Street following the DJIA last night closed down quite sharply at -1.25% due to fears of an increase in the new Covid-19 variant accompanied by a drop in crude oil prices of -2.27% and a fall in February coal prices of -0.43 % so that there is potential, at least, to further profit taking in energy based stocks.

On the other hand, debauchery is likely to continue in metal mining & CPO based stocks following the increase in commodity prices such as: Gold + 2.43%, Nickel + 4.72%, Tin + 3.31% & CPO + 2.79%.

Minister of Finance Sri Mulyani Announces Economic Growth Projections for 2021

Based on data presented by the Minister of Finance, the Indonesian economy in March-April 2021 is projected to be around 4.5% -5.5%. Likewise, in May-June 2021, the economy is predicted to remain at a level of 4.5% -5.5%. Then, Indonesia`s economic growth is predicted to break through 5% in September-October 2021. Then, the economy is predicted to settle at the 5% level in December 2020. Meanwhile, economic growth throughout 2020 will decline, in the range of -1.7% - -2.2 %.

Inflation in 2020 is only 1.68%, the lowest since BPS released inflation data

BPS noted that inflation in 2020 was only 1.68% yoy or below the inflation target target of 2% - 4%.

B. INDONESIA CORPORATE NEWS

1. PT Adhi Karya (ADHI)

The company has pocketed Rp. 1.6 trillion from the payment of the two projects that have been carried out by the company, namely, Jabodebek Light Rapid Transit (LRT) Phase I and the Banda Aceh-Sigli toll road. Thus, overall ADHI has received payments from the Jabodebek LRT project worth Rp. 13.3 trillion including taxes.

2. PT Wijaya Karya (WIKA)

The company targets the acquisition of new contract values of Rp 40 trillion in 2021, an increase of 74% compared to the realization in 2020 of Rp 23 trillion. The increase in the contract value will be driven by government infrastructure projects that were delayed last year.

3. PT Wijaya Karya Gedung (WEGE)

The company is targeting new contracts worth IDR 4.22 trillion in 2021 or 22.67% higher than the 2020 new contract target of IDR 3.44 trillion. With contracts carried over from 2020 (carry over) worth IDR 11.30 trillion, WEGE is targeting the order book to reach IDR 15.52 trillion in 2021 or up 6.27% compared to the target set in the revised RKAP 2020 of IDR 14.61. trillion. In terms of profit, it is also targeted to increase to IDR 231.67 billion or 67.26% of the revised 2020 net profit target of IDR 138.51 billion.

4. PT Pan Brothers (PBRX)

The company is targeting revenue growth in 2021 of 10% YoY. Several efforts were made to achieve this target, namely continuing the continuous automation and digitization program. The capacity of both parent and subsidiary companies is targeted to increase in 2021 to 130 million pieces of garment compared to 2019 with a capacity of 117 million pieces of garment per year. Capex in 2021 is around US $ 10 million, for the continuous maintenance and upgrade of the industry 4.0 PBRX program.

C. MARKET STATISTICS

DJIA -382.5 -1.25% 30223
NASDAQ -189.8 -1.47% 12698
*GOLD +46.2 +2.43% 1947.80*
OIL -1.10 -2.27% 47.32
COAL (Feb`21/Newcastle) +0.70 +0.87% 81 20
*NICKEL +782.5 +472% 17380!!*
*TIN +672.50 +3.31% 20987.50!!*
*CPO (Feb`21) +108 +2.79% 3872!!*
*EIDO +0.44 +1.88% 23.6*
*TLK 24.72 (3435) vs 3490 (TLKM)*
US 10yr Unch 0.9170
INDO 10yr -0.0254 -0.41% 6.1547
INDO CDS (5 yrs) -0.239 -0.354% 67.214
IDR (Spot) 13,895

*IDX Range : 6,060 - 6,151*
*USD/IDR Range: 13,820 - 13,955*

D. STOCK WATCHLIST

AALI, INCO, ERAA, ANTM, TINS, TLKM, MEDC, MDKA, ADHI, BBRI

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