Tax Directorate General of Finance Ministry targets 17 Million of SPT Consumer prices jump much more than forecast

(1)

Morning Brief

_{Daily | Feb 15, 2018}

JCI continued to rally yesterday amid investors' confidence ahead of the release

of the U.S. inflation data in January.

Top Gainers: Mining (+1.71%),

Infrastructure (+1.39%), Finance (+1.14%).

Today’s Outlook: Further Mining Rally

We estimate JCI to rally with the

support range of 6564

-

6568 and resistance

range of 6647

-

6652

. The release of the U.S. inflation data topped estimate

gave no negative impact as the U.S. markets keeps pacing. It is underlined by the

robust

-

inflation

-

yet

-

sluggish

-

retail sales backdrop. On the other flip side, the

The U.S. markets closed higher last night after it moved lower in its opening due

to the release of topping

-

estimate inflation.

Europe

European markets rallied yesterday. Investors ignored the release of the U.S.

inflation data and focused on the release of companies performance.

Asia

Asia markets moved mixed yesterday as Japan markets were bearish after Yen

made further rally against dollar.

(2)

Stocks Recommendation

INCO

Last = 3630

Analysis

Global nickel price soared 4.83% yesterday

amid 4

-

day

-

back

-

to

-

back decline in dollar.

Range

3600 – 3860

Action

Trading Buy. Cut Loss If Below 3600

ELSA

Last = 420

Analysis

Global oil price experienced rebound of 2.38%

as the U.S. inventory crude data grew only by

1.8 million barrel, below the estimate of 2.8

million barrel.

Range

410 – 446

Action

Trading Buy. Cut Loss If Below 410

HMSP

Last = 4880

Analysis

Competition in cigarette industry is estimated

to be less intense amid the government plan to

curb the cigarette price at the discount the

producers usually gives on new products.

Range

4840

-

4960

Action

Trading buy. Cut Loss If Below 4840

Source: Bloomberg

Sector Rotation

Source: Bloomberg

Relative Rotation Graph

-

Last 10 Days

97 98 99 100 101 102

95 96 97 98 99 100 101 102 103 104 105 106 107 108

Agriculture

Mining

Lagging

Improving

Leading

Weakening

Infrastructure

Basic Ind.

Consumer

Finance

Misc Ind. Trade

Property

Lagging

Improving

Leading

(3)

(4)

Company News

Domestic & Global News

Tax Directorate General of Finance Ministry targets 17 Million of SPT Tax Payers

Tax Directorate General of Finance Ministry targets the submission of 2018’s annual tax return forms (SPTs) hikes into 17.5

million. In 2017, there is only 16.6 million tax payers submitting SPT. Tax directorate general will be more active in

collecting SPT by approaching tax payers. This strategy has the tax directorate general to actively approach companies

having numerous employees. (Kontan)

Consumer prices jump much more than forecast

U.S. consumer prices rose considerably more than expected in January, fueling fears that inflation is about to turn

dangerously higher. The Consumer Price Index rose 0.5 percent last month against projections of a 0.3 percent increase,

the Labor Department reported Wednesday. Excluding volatile food and energy prices, the index was up 0.3 percent

against estimates of 0.2 percent. The report indicated that price pressures were "broad

-

based," with rises in gasoline,

shelter, clothing, medical care and food. (CNBC)

WTON

: Secures New Contract of IDR629 Billion

WTON posted new contract of IDR629 billion per January

2018 and stated that the new contract was obtained from

four entities. They are WIKA with contract of IDR49 billion,

SOEs with contract of IDR281 billion, the government with

the contract of IDR45 billion, and the private companies

with the contract of IDR254 billion. (Kontan)

DILD

: Targets Marketing Sales of IDR3.3 Trillion

DILD targeted the marketing sales of IDR3.3 trillion in

2018. The target grew by 15% compared to its 2017

contract of IDR2.93 trillion. Based on the development

segment, the biggest contribution of the target derives

from the mixed

-

used & high rise development segment

with the contribution worth IDR2.5 trillion or 75.7%.

(Kontan)

PSAB

: Will Issue MTN of IDR300 Billion

PSAB through its subsidiary, PT J Resources Nusantara, will

issue MTN with principal amounting to IDR300 billion. The

MTN issued on February 15, 2018 will mature on February

15, 2021. (Kontan)

WEGE

: Secures New Contract of IDR422 Billion

(5)

Global Economic Calendar

Date

Country

Hour

Jakarta

Event

Period

Actual

Consensus

Tuesday

JPN

06:50

PPI YoY

Jan

2.70%

3.10%

13 -

Feb

JPN

06:50

PPI MoM

Jan

0.30%

0.20%

UK

16:30

CPI MoM

Jan

-

0.50%

-

0.60%

0.40%

UK

16:30

CPI YoY

Jan

3.00%

2.90%

3.00%

Wednesday

JPN

06:50

GDP SA QoQ

4Q P

0.10%

0.20%

0.60%

14 -

Feb

JPN

06:50

GDP Annualized SA QoQ

4Q P

0.50%

1.00%

2.50%

GER

14:00

GDP SA QoQ

4Q P

0.60%

0.80%

GER

14:00

GDP NSA YoY

4Q P

2.3%

2.20%

2.30%

GER

14:00

CPI MoM

Jan F

-

0.70%

-

0.70%

-

0.70%

GER

14:00

CPI YoY

Jan F

1.60%

EU

17:00

GDP SA QoQ

4Q P

0.60%

EU

17:00

GDP SA YoY

4Q P

2.70%

USA

20:30

CPI MoM

Jan

0.50%

0.40%

0.10%

USA

20:30

CPI Ex Food and Energy MoM

Jan

0.30%

0.20%

0.30%

USA

20:30

CPI YoY

Jan

2.10%

2.00%

2.10%

USA

20:30

CPI Ex Food and Energy YoY

Jan

1.80%

1.70%

1.80%

Thursday

USA

20:30

Initial Jobless Claims

10 -

Feb

--

221k

15 -

Feb

USA

20:30

PPI Final Demand MoM

Jan

0.40%

-

0.10%

USA

20:30

PPI Final Demand YoY

Jan

2.50%

2.60%

Friday

USA

20:30

Housing Starts

Jan

1225k

1192k

16 -

Feb

Source: Bloomberg

Domestic Economic Calendar

Source: Bloomberg

Date

Hour

Jakarta

Event

Period

Actual

Consensus

Prev.

Thursday

Tentative

Bank Indonesia 7D Reverse Repo

Dec

4.25%

15 -

Feb

11:00

Imports YoY

Dec

16.20%

17.83%

11:00

Exports YoY

Jan

6.00%

6.93%

11:00

Trade Balance

Jan

$320m

-

$270m

Corporate Calendar

Date

Event

Company

Monday

Rights Delisting Date

ESSA

12 -

Feb

Thursday

IPO Listing Date

BOSS (Borneo Olah Sarana Sukses)

15 -

Feb

(6)

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