Morning Brief
Daily | Jan 14, 2019
Investors focused on China's lackluster economic data and the shutdown in the U.S. administration. Asia markets rallied along with the positive progress of the U.S. and China trade war. In addition, Europe market ended mixed in relation to the Brexit progress; the U.S. markets closed flat along with the profit taking act.Today’s Outlook: Exuberant Emerging Market
We estimate that today, JCI will rally with the support range of 6250-6290 and
resistance range of 6360-6400. Last week, MSCI emerging market stocks index
rallied by 3.8%, backed by the positive sentiment of the trade deal between the U.S. and China. Besides, the Fed also signaled that it will not promptly tighten its monetary policy. The stance is estimated to continue further until this week when investors keep their eyes on China's trade balance.
In the domestic market, investors are estimated to digest the result of Bank Indonesia (BI) Board of Governors Meeting dated Thursday, 01/17/19. The meeting discusses its benchmark rate estimated to be stable at 6.0%.
Company News
Domestic & Global News
BI: Processing Sector Is Still Expansive
Bank Indonesia (BI) cited its Prompt Manufacturing Index of 51.92% in 4Q18. The index is lower than that of 52.02% in 3Q18. However, it stated that in 4Q18, the processing industry was still at the expansion level. The expansion of processing
ADHI : Targets Growth of 20% in Revenues
ADHI targets the revenue of IDR29 trillion or growing 20% y-y in 2019 on the back of its about-to-be developed
projects. For most of 2019, it projects to construct 80 projects. In cooperation with PT Hutama Karya, it will develop the biggest project in 2019: 74-km Banda Aceh
-Sigli toll road project. (Kontan)
MEDC : Aims to Take Over Ophir Energy Plc
MEDC stated its interest in taking over Ophir Energy Plc, listed on London Stock Exchange. Ophir runs its business in the exploration sector and the oil and gas upstream products. The acquisition has the offering price of 340 million pounds or equal to IDR6.13 trillion. Of note, Ophir's production reached 25,000 BOEPD. (Kontan)
WEGE : Targets Revenue of IDR7.72 Trillion
WEGE targets the 2019 revenue of IDR7.72 trillion and the net profit of IDR533 billion. Another to setting the target, it also pursues the new contracts of IDR11.98 trillion in 2019. Thus, it will actively target the infrastructure project of 1 million houses, airport projects, construction projects, deriving from its parent entity, and the premium market segment. (Bisnis Indonesia)
DILD : Targets Increase in Office Tenant
In 2019, DILD targets the increment in office tenant; therefore, it will the promotion program to allure consumers' interest, particularly in the old buildings. Of note, the occupancy of DILD's Jakarta-based office
buildings such as Intiland Tower, and South Quarter are 85% and 70%, respectively. (Kontan)
Sector Rotation
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Last 10 Days
Global Economic Calendar
Source: Bloomberg
Date Country JakartaHour Event Period Actual Consensus Previous
Monday CHN Tentative Money Supply M2 YoY Dec 8.10% 8.00%
14- Jan CHN Tentative Trade Balance Dec $51.60b $44.74b USA Tentative Trade Balance Nov - -$54.0b -$55.5b
USA Tentative Factory Orders Nov 0.30% -2.10%
USA Tentative New Home Sales Nov 566k 544k
USA Tentative Durable Goods Orders Nov F -- 0.80%
Tuesday USA 20:30 PPI Final Demand MoM Dec 1.80% 2.30%
15 - Jan 3.00% 7.60%
Wednesday JPN 06:50 PPI YoY Dec -0.50% 1.90%
16 - Jan JPN 06:50 Core Machine Orders MoM Nov 0.10% 0.10% JPN 11:30 Tertiary Industry Index MoM Nov 1.70% 1.70%
GER 14:00 CPI MoM Dec F 0.10% 0.20%
GER 14:00 CPI YoY Dec F 1.80% 1.80%
UK 16:30 PPI Output NSA MoM Dec 0.20% 0.20%
UK 16:30 CPI Core YoY Dec 2.20% 2.30%
UK 16:30 CPI MoM Dec -- 23.50%
UK 16:30 CPI YoY Dec 0.30% 0.20%
USA 19:00 MBA Mortgage Applications 11-Jan 0.30% -0.60%
USA 20:30 Retail Sales Advance MoM Dec 0.40% -0.90%
Thursday EU 17:00 CPI MoM Dec 0.00% -0.20%
17 - Jan EU 17:00 CPI YoY Dec F 1.60% 1.90%
USA 20:30 Housing Starts Dec 1253k 1256k
USA 20:30 Initial Jobless Claims 12-Jan -- 216k
Friday JPN 06:30 Natl CPI YoY Dec 0.30% 0.80%
18 - Jan JPN 11:30 Industrial Production MoM Nov F -- -1.10%
USA 21:15 Industrial Production MoM Dec 0.30% 0.60% USA 22:00 U. of Mich. Sentiment Jan P 96.4 98.3
Domestic Economic Calendar
Date Hour
Jakarta Event Period Actual Consensus Prev.
Tuesday 11:00 Imports YoY Dec -- 0.1168
15 - Jan 11:00 Trade Balance Dec -- -$2050m
Corporate Calendar
Date Event Company
Wednesday Delisting IMJS
06 - Jan Extraordinary Shareholder Meeting SKYB, NUSA, DEWA
Friday Extraordinary Shareholder Meeting ARTA, HRUM, BOSS
18 - Jan
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