Indonesia Market Today - 15 February 2021
A. INDONESIA MORNING MARKET REVIEW
(Mon, 15 Feb 2021).
Global Market Highlight
DJIA rose by +0.09% on Friday (12/02) followed by S&P 500 (+0.47%) and Nasdaq (+0.50%). Wall Street closed at all-time highs as investors remained hopeful for a fresh round of stimulus spending, strong corporate earnings and progress in the rollout of Covid-19 vaccines. Subsequently, President Joe Biden has secured deals for another 200 million doses of Covid-19 vaccine from Moderna and Pfizer, bringing the US total to 600 million and will have enough supply for 300 million Americans by the end of July. Fed`s assured that monetary policy is likely to continue supporting markets and the economy, as Fed is unlikely to consider raising rates or reducing bond purchases for the foreseeable future. Moreover, the market will look forward to several data releases today, such as: 1) Japan GDP Growth; 2) Eurozone Balance of Trade; 3) Eurozone Industrial Production.
Domestic Update
• The government decided to provide a new incentive in the form of a discount on PPnBM rates for segment motor vehicles under 1,500 cc with the sedan and 4x2 categories. The policy will take effect in March 2021. This PPnBM discount uses a government-borne scheme (DTP), with a discount amount of 100% in the first three months. For the following three months, the amount of discount given is 70%, and the last three months is 50%.
• Furthermore, there was an addition of 2,496 new Covid-19 cases in Jakarta yesterday.
IHSG Updates
JCI increased by +0.33% to 6,222.52 on Thursday (11/02) followed by net foreign sell reaching IDR14.40 billion. JCI still managed to strengthen on the last day of trading last week, supported by the optimism from the domestic investor for the Chinese New Year on Friday (12/02) while foreign investors seemed to be taking profit. Furthermore mining, consumer, basic industry, trading, and finance sectors supported the gains on JCI. Meanwhile, the Rupiah exchange rate was strengthening at IDR13,972. We estimate JCI will move in the range of 6,018 – 6,280 while waiting for Balance of Trade data Release.
B. INDONESIA CORPORATE NEWS
1. WSKT IJ
Targets new contracts up to FY21E of IDR26 trillion. In addition, WSKT will allocate a capital expenditure of IDR11 trillion in FY21E which will be used for the completion of several toll roads, such as the Jogja-Bawen toll road. The source of funding for the FY21E capex will come from toll divestments and through bank loans.
SWF is still a concern of investors, because WSKT must improve cash flow to improve its current leverage. Currently WSKT is trading at 1.58x PBV.
2. ANTM IJ
Targets production and sales volume in FY21E to be 26,000 tonnes of nickel in ferronickel (TNi), (vs 25,970 TNi in FY20). In FY21E ANTM targets total nickel ore production of 8.44 million wmt (wmt) (vs 4.76 million wmt FY20) than, FY21E nickel ore sales are targeted at 6.71 million wmt (vs 3.30 million wmt FY20). Meanwhile, sales of bauxite ore FY21E are targeted at 2.73 million wmt (vs 1.23 million wmt FY20).
We are confident that ANTM will be able to achieve its target this year, as nickel ore and gold have significantly increased production and sales in 4Q20. ANTM is currently trading at 61.89x/3.64x PE/PBV.
3. ELSA IJ
Establishes further cooperation with US-based technology company Schlumberger to optimize competence and resources in the upstream business service line, namely reservoir characterization, drilling, oil and gas production, surface production facilities, and integrated services. In addition, this cooperation is to support the government in achieving the oil production target of 1 million BOPD at the national production level.
The collaboration is expected to improve ELSA`s production performance. ELSA is trading at 11.12x/0.75x PE/PBV.
C. MARKET STATISTICS
CPIN, PTPP, JSMR, ASII.
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