Indonesia Market Today - 8 January 2021
A. INDONESIA MORNING MARKET REVIEW
Friday (08/01/2021). The inauguration of Joe Biden as US President is the driving force for the DJIA to strengthen by + 0.69% and if combined with the strengthening of several commodity prices such as: Coal + 6.47%, Oil + 1.21%, Nickel + 1.77% & Timah + 0.44% has the potential to be a catalyst to boost JCI this Friday.
On the other hand, there is an interesting phenomenon where yesterday JCI strengthened quite sharply + 1.45% & last night the DJIA also strengthened, it is hoped that EIDO also strengthened last night. However, in fact EIDO actually fell -0.79% which raises an interesting question, why did EIDO drop when the JCI & DJIA strengthened ?? * In the middle of Monday, January 11 to January 25, 2021, a strict PSBB will be implemented in Java & Bali which has the potential to slow economic growth Indonesia in early 2021.
The NIM of banks is projected to be under pressure in 2021, what is the reason?
The pressure of the Covid-19 pandemic which hindered credit expansion and added to the increasing burdens to be borne by banks has pushed down the net interest income (NIM) margin in 2020. Based on OJK data, NIM Conventional commercial banks as of October 2020 were at the level of 4.41%, down from 4.91% at the end of 2019. The decline in the benchmark interest rate, which has reached 1.25% throughout 2020, has made bank interest income even lower. A number of banks such as: * BBRI, BBCA, Bank Woori * estimate that this NIM pressure is likely to continue this year because economic conditions are not predicted to fully recover.
PSBB is back, PHRI: Hotel and restaurant entrepreneurs can no longer survive.
Deputy Chairman of the Indonesian Hotel and Restaurant Association (PHRI) Maulana Yusran said that with current conditions, businessmen from hotels and restaurants to tourism will no longer be able to survive. Maulana added that the current situation is different from the PSBB volume one which was carried out in early 2020, where entrepreneurs still have income reserves.
The banking and multi-finance sectors have the largest maturing bonds in 2021
The value of corporate bonds that will mature in 2021 is predicted to reach IDR 121.9 trillion. Based on PT Pefindo`s data, the largest portion of maturing bonds for 2021 is held by the banking sector, reaching 20.7%. Followed by the multi-finance sector with 17.8%, the special financial institutions sector at 16.8%, and the finance industry with 8.8%. As for the mining sector by 5%, property 4.3%, construction 4%, telecommunications 3.9%, and other sectors by 18.7%.
B. INDONESIA CORPORATE NEWS
1. PT Metrodata Electronics (MTDL)
The company projects revenue in 2021 to grow by around 8% (around Rp. 14.45 trillion) and net profit to grow by around 10% (around Rp. 392.57 billion). The company is optimistic that this will be achieved due to several factors driving growth. First, from the distribution side, such as hardware such as PCs and Notebooks, which have surged amidst Work From Home and online school activities. In addition, there is an increasing demand for services such as Big Data & Analytics, IT Security, Business Applications, as well as the Digital Business Platform. For 2021. MTDL has prepared a capex of around IDR 250 billion.
2. PT Perusahaan Gas Negara (PGAS)
Moody`s Investor Service cut PT Saka Energi Indonesia`s company and letter rating from B1 to B2. The rating was lowered regarding the tax dispute faced by Saka Energi`s parent company, PGAS. * Moody`s also changed the company`s rating and Saka Energi`s bonds to a review for downgrade *. In addition, the outlook for all Saka Energi Indonesia`s ratings has also changed to rating under review (RUR) from negative *.
3. PT Victoria Care Indonesia (VICI)
The company allocates capital expenditure (capex) in the range of Rp25-26 billion in 2021. Capex is used for factory machinery purchases and for land and building purchases to increase the company`s production capacity. The factory will be built in Semarang with a target of completion in 2023.
C. MARKET STATISTICS
*DJIA +211.73 +0.69% 31041*
*NASDAQ +326.6 -0.61% 12740*
GOLD -3.9 -0.20% 1914.80
*OIL +0.61 +1.21% 50.94*
*COAL (Feb`21/Newcastle) +4.90 +6.47% 80.60!!*
*NICKEL +315 +1.77% 18090*
*TIN +92.50 +0.44% 21155*
CPO (Mar`21) -58 -1.50% 3817
EIDO -0.19 -0.79% 23.81!!!
*TLK 24.76 (3445) vs 3390 (TLKM)*
US 10yr +0.0290 +2 78% 1.0710
INDO 10yr +0.0272 +0.44% 6.2202
INDO CDS (5 yrs) -1.446 -2.098% 67.48
IDR (Spot) 13,910
*IDX Range : 6,107 - 6,199*
*USD/IDR Range: 13,840 - 13,980*
D. STOCK WATCHLIST
ANTM, MEDC, INCO, TINS, ISAT, AKRA, UNTR, WIKA, LSIP, JSKY.
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