Morning Brief
Foreign investors also posted the net buy of IDR1.13 trillion. Top Gainers: Basic
Industry (+1.39%), Trade (+0.96%), Mining (+0.93%)
European and Asia markets finished at record highs dated Friday, 09/21/2018; in contrast, the U.S. finished on a mixed note. The backdrop in the global markets was attributable to investors’ concerns over the U.S and China trade war dollar to rupiah. Furthermore, the government will review the tax policy set on government bonds; for example, the government will ease the tax governing the investment on government bonds. The government’s stance inevitably sends government bonds to consistently lower.
From the global outlook, the major Asia markets such as Japan, China, and South Korea which are off will spark minimum global sentiments. Global investors most likely keep their wary eyes on FOMC meeting to be held in the mid of this week; indeed, they also anticipate the U.S. tariff of China’s product taking into effect today.
Stocks Recommendation
BBTN Last = 2680
Analysis BBTN has the highest credit growth of 19%
among other big cap banks. Indeed, its valuation is very attractive with the P/E of 1.3x
a steep low than other big caps’ P/E of 2.0x
-4.5x at average.
Range 2650 – 2780
Action Trading Buy. Cut Loss If Below 2650
INDF Last = 6075
Analysis We estimate that the trend of INDF’s
downbeat stock prices likely halts because the stable stock prices of its subsidiary, ICBP is possible to boost INDF’s stock prices to rally. Now, INDF’s stocks are traded at a P/E of
13.9x, a steep lower than the last-5-year
average P/E of 21.2x.
Range 6000 – 6425
Action Trading Buy. Cut Loss If Below 6000
ANTM Last = 820
Analysis ANTM’s posted the excellent sales
performance. In 1H18, its gold sales volumes soared by 317% underpinned by its business expansion of gold sale in the retail market.
Range 805 – 865
Action Trading buy. Cut Loss If Below 805
Source: Bloomberg Source: Bloomberg
Source: Bloomberg
Sector Rotation
Source: Bloomberg
Company News
Domestic & Global News
Budget Deficit in August's 2018: the Lowest Among Two Years' Deficits
The budget deficit remains low further. The Financial Minister posted that the budget deficit per August 31, 2018 reached
IDR150.66 trillion or 1.01% of the Gross Domestic Products (GDP). August’s figures were the lowest compared to the prior
-two-year deficit. At the end of August 2017, the budget deficit was IDR224.9 trillion or equal to 1.65% of GDP, while at the
end of August 2016, the budget deficit was IDR261.8 trillion of equal to 2.09% of GDP. (Kontan)
China Said to Call Off Trade Talks as Tariff War Escalates
China has canceled planned trade discussions with the United States as both sides escalate their dispute in the wake of a new round of tariffs, The Wall Street Journal reported on Friday. This week, President Donald Trump slapped a fresh round of tariffs on Chinese goods ahead of scheduled trade talks with Beijing, placing 10 percent duties on $200 billion of goods. China almost immediately retaliated with tariffs on $60 billion in U.S. products. (CNBC)
WIKA : Targets New EPC Contracts of IDR7.67 Trillion
WIKA targets to secure new Engineering Procurement Construction (EPC) contract worth IDR7.67 trillion until the end of 2018. The target is equal to 13.2% of WIKA’s total new contracts in 2018. Of note, it currently works on EPC projects covering industrial plan, oil & gas, and power plant sectors. (Kontan)
ADRO : Augments Coking Coal Portion
ADRO is certain to augment the revenue portion contributed by coking coal. The increment is underlined by the lack of coking coal producers amid the high demand for coking coal. Until the end of 2018, ADRO
targets the coal production of 54-56 million tons. (Kontan)
CTRA : Develops New Project in Surabaya
CTRA likely develops a new mixed use project situated in Wiyung, West Surabaya. The project consists of shopping centers, apartments, SOHO, and entertainment centers constructed on area of 8.5 hectares. The construction of such project will run for 8 years with the investment funds of IDR2.4 trillion. (Kontan)
ADHI : Secures New Contracts of IDR8.91 Trillion
Global Economic Calendar
Date Country Hour
Jakarta Event Period Actual Consensus Previous
Monday GER 15:00 IFO Business Climate Sep 103 103.8
24 - Sep
Tuesday USA 21:00 Conf. Board Consumer Confidence Sep 131.5 133.4
25 - Sep
Wednesday USA 21:00 New Home Sales Aug 631k 627k
26 - Sep
Thursday USA 01:00 FOMC Rate Decision (Upper Bound) 26-Sep 2.25% 2.00%
27 - Sep USA 01:00 FOMC Rate Decision (Lower Bound) 26-Sep 2.00% 1.75%
GER 13:00 GfK Consumer Confidence Oct 10.5 10.5
EU 16:00 Consumer Confidence Sep F -- -2.9
GER 19:00 CPI MoM Sep P 0.10% 0.10%
GER 19:00 CPI YoY Sep P 2.00% 2.00%
USA 19:30 GDP Annualized QoQ 2Q T 4.30% 4.20%
USA 19:30 Durable Goods Orders Aug P 1.70% -1.70%
USA 19:30 Initial Jobless Claims 22-Sep -- 201k
Friday JPN 06:30 Jobless Rate Aug 2.50% 2.50%
28 - Sep JPN 06:50 Industrial Production MoM Aug P 1.50% -0.10%
CHN 08:45 Caixin China PMI Mfg Sep 50.5 50.6
GER 14:55 Unemployment Change (000's) Sep -8k -8k
UK 15:30 GDP QoQ 2Q F 0.40% 0.40%
UK 15:30 GDP YoY 2Q F 1.30% 1.30%
USA 19:30 Personal Income Aug 0.40% 0.30%
USA 19:30 Personal Spending Aug 0.30% 0.40%
Source: Bloomberg
Source: Bloomberg
Domestic Economic Calendar
Date JakartaHour Event Period Actual Consensus Prev.
Thursday Tentative Bank Indonesia 7D Reverse Repo 27-Sep 5.75% 5.50%
27 - Sep
Friday Tentative Money Supply M2 YoY Aug -- 6.30%
28 - Sep Tentative Money Supply M1 YoY Aug -- 7.00%
Corporate Calendar
Date Event Company
Tuesday Extraordinary Shareholder Meeting BNLI, FREN
25 - Sep Cum Dividend Date HEXA (IDR0.02 per share)
Wednesday Extraordinary Shareholder Meeting BIPP
26 - Sep Annual Shareholder Meeting RIGS, ZINC
Wednesday Extraordinary Shareholder Meeting MYRX
27 - Sep Annual Shareholder Meeting AKKU, BIPI
Friday IPO Listing Superkrane Mitra Utama
28 - Sep
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