Indonesia Market Today - 8 April 2021

A. INDONESIA MORNING MARKET REVIEW

THU, 8 APRIL 2021

Global Market Highlight

DJIA rose by +0.05% on Wednesday (07/04) followed by the S&P 500 (+0.15%) while Nasdaq weakened -0.07%. Wall Street closed varied but the majority still increased as the increase in tech was limited by an uptick in US bond yields after the Fed`s March meeting minutes continued to signal easy monetary policy. On the other hand, Biden did signal that he was willing to negotiate on a proposed increase in taxes. Moreover, the market will look forward to several data releases today, such as: 1) US FOMC Minutes; 2) US Initial Jobless Claims; 3) Eurozone ECB Monetary Policy Meeting Accounts.

Domestic Update

• BI released the position of Indonesia`s foreign exchange reserves at the end of March 2021 which was recorded at USD137.1 billion. The position of foreign exchange reserves is equivalent to financing 10.1 months of imports or 9.7 months of imports and servicing of government external debt, and is above the international adequacy standard of around 3 months of imports. In addition the decline in foreign exchange reserves in March 2021 was influenced by the payment of government external debt according to the pattern of maturity of the payment.

• Furthermore, there was an addition of 862 new Covid-19 cases in Jakarta yesterday.

IHSG Updates

JCI rose by +0.56% to 6,036.62 on Wednesday (07/04) followed by net foreign sell reaching IDR588.20 billion. This time, JCI maintain to increase despite the drop on the global indices. The rise was supported strongly by trade sector, followed by infra and finance, while agri slightly weakened as well as property and miscellaneous industry. Meanwhile, the Rupiah exchange rate was strengthening at Rp14,495. We estimate JCI will move in the range of5,900-6,100 while waiting for Retail Sales data release.

Support: 5,892, 5,735
Resistance: 6,230, 6,390

B. INDONESIA CORPORATE NEWS

1. BJBR IJ

Will distribute FY20 cash dividends amounting to IDR95.74/share or reaching IDR941.97 billion of the total FY20 net profit worth IDR1.7 trillion.

BJBR`s dividend payout ratio of 56% of net profit FY20 decreased compared to FY19 which reached 59.51% while the dividend yield offered was 6.05% or lower than FY19`s yield of 10.27%. Currently BJBR is trading at 9.21x/1.30x PE/PBV.

2. ITMG IJ

Will distribute an FY20 cash dividend of IDR167/share after previously distributing an interim dividend of IDR307/share in Nov-2020. Thus, the total dividend per share distributed to shareholders from the financial year FY20 was Rp474/share or reached USD35.5 million. The date for Cum dividend is April 29, 2021.

ITMG`s dividend payout ratio reaches 90% of FY20 net profit with the total dividend yield offered of 3.76% or is still below the average yield above the 5% level. ITMG is currently trading at 22.57x/1.18x PE/PBV.

3. ANTM IJ

Will distribute FY20 cash dividends of IDR14.37/share or IDR402 billion of the total FY20 net profit of IDR1.15 trillion.

ANTM`s dividend payout ratio of 35% of FY20`s net profit fell slightly compared to FY19 which reached 35.25% while the dividend yield offered was 0.61% or an increase compared to FY19`s yield of 0.46%. ANTM is trading at 49.34x/2.98x PE/PBV.

Corporate Action

Cum Dividend: SMCB (IDR25.49/share), SDRA (IDR10/share), TBIG (IDR32/share)

C. INDONESIA STOCK WATCHLIST

1. BBTN - Buy on Weakness (1,700)

Buy on Weakness: 1,620-1,700
Target Price: 1,750, 1,950
Stoploss: below 1,500

2. ITMG - Buy on Weakness (12,600)

Buy on Weakness: 12,000-12,600
Target Price: 13,200, 14,000
Stoploss: below 11,425

3. INDF - Buy on Weakness (6,775)

Buy on Weakness: 6,550-6,750
Target Price: 7,000, 7,275
Stoploss: below 6,425

4. WSKT - Sell on Strength (1,040)

Sell on Strength: 1,055-1,200

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