Indonesia Market Today - 11 January 2021

A. INDONESIA MORNING MARKET REVIEW

Monday (11/01/2021). After the JCI strengthened over the past week by + 4.66% accompanied by a Net Buy of Foreign Investors of Rp 2.41 trillion, entering the beginning of this week we found the number of people affected by Covid19 has increased even for 3 days (Friday to Sunday) an average of 10,000 people per day Even according to epidiomologists, if the testing and tracing is increased it is not impossible to reach 30,000 - 40,000 people per day, so it is not surprising that this Monday the Tight PSBB starts in Java & Bali which of course slows down the economic rhythm amid falling prices for several commodities such as: Gold -3.5%, Nickel -3.5% & Timah -0.51% has the potential to become a negative sentiment for investors to take profit taking on stocks that have risen too fast but not supported by fundamental performance, even some stocks still suffer significant losses but the price has skyrocketed making the valuation of these shares super duper expensive.

On the other hand, the impact of rising prices for several commodities, such as: Oil + 3.56% & Coal + 6.47%, has the potential to push up stocks under these commodities.

Record for additional cases of COVID19 reaches 10,000, epidemiologist: This is not peak yet

The daily Covid-19 cases set another record on Friday (8 / 1-9 / 1) with the addition of over 10,000 new cases in 48 hours. This number is the highest since the Covid-19 case was first discovered on March 2, 2020. Epidemiologist from Griffith University Dicky Budiman said the new record for adding daily cases in Indonesia had not yet shown the peak of the pandemic. He estimated that the Covid-19 pandemic in Indonesia is still far away. This refers to tracing and testing in Indonesia which are still low. * If tracing and testing in Indonesia can be further improved, ideally the current addition of daily cases in Indonesia is in the range of 30,000-40,000 cases *.

B. INDONESIA CORPORATE NEWS

1. PT Vale Indonesia (INCO)

INCO`s Finance Director, Bernardus Irmanto, assessed that the * increase in nickel prices was only temporary in nature * due to the encouragement of positive market sentiment caused by several news that were positively perceived by the market. However, if you look at nickel inventory at LME, it actually doesn`t move much. On the other hand, INCO`s plan for a rebuild furnace 4 project this year will affect the company`s nickel production. The rebuild furnace 4 project will take place from May to November 2021. The company said the nickel production volume in 2021 will be lower than 70,000 tons due to all rebuild activities for 5 months. Meanwhile, in 2020, INCO is targeting a production volume of 73,700 metric tons.

2. PT PP Presisi (PPRE)

The company targets a 63.64 percent increase in new contracts to IDR 3.6 trillion in 2021 compared to last year`s target of IDR 2.2 trillion. The increase in new contracts encourages the company to target an increase in revenue to Rp 3 trillion with EBITDA of around Rp 900-970 billion this year. Meanwhile, the net profit is expected to reach Rp. 60 billion. The construction business is still the main contributor to revenue with a target contribution of 80% and the rest comes from the nickel mining service sector with a revenue contribution target of 10-15%. In 2021, the company allots Rp 336 billion for capex. Most of the funds will be used for the purchase of heavy equipment with the aim of renovating to support business growth.

3. PT Integra Indocabinet (WOOD)

The company targets sales to grow 20% or around 3.12 trillion in 2021 from 2020 which is targeted to reach IDR 2.6 trillion.

4. PT Waskita Karya (WSKT)

The company designed the issuance of debt securities to refinance bonds maturing in 2021, namely Sustainable Bonds III Waskita Karya Phase II Year 2018 Series A with a principal amount of IDR 1.17 trillion will mature on February 23, 2021. Furthermore, Waskita Karya II Phase II Sustainable Bonds 2016, valued at Rp900 billion will mature on September 28, 2021.

5. PT Tower Bersama Infrastructure (TBIG)

The company is preparing various schemes to pay off the corporate bonds that mature in 2021. The company has five bonds that will mature this year with an accumulated value of Rp1.99 trillion.

C. MARKET STATISTICS

*DJIA +56.8 +0.18% 31097*
*NASDAQ +134.5 +1.03% 13201*
GOLD -67.00 -3.5% 1846.60
*OIL +1.81 +3.56% 52.64*
*COAL (Feb`21/Newcastle) +4.10+6.47% 84.70*
NICKEL -565 -3.5% 18090
TIN -107.5 -0.51% 21047.5
CPO (Mar`21) +3 +0.08% 3820
*EIDO +0.71 2.98% 24.52*
*TLK 24.52 (3437) vs 3570 (TLKM)*
US 10yr +0.0340 +3.17% 1.1050
INDO 10yr +0.0598 +0.96% 6.2800
INDO CDS (5 yrs) +0.944 +1.40% 68.429
IDR (Spot) 14,020

*IDX Range : 6,215 - 6,308*
*USD/IDR Range: 13,950 - 14,080*

D. STOCK WATCHLIST

ASII, TLKM, WIKA, CPIN, INTP, PTPP, UNTR, ERAA, EXCL, BBRI.

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