Morning Brief
Daily | Jan 25, 2019
performance, coupled with the rupiah appreciation. Chinese fiscal stimuli proved a positive sentiment for regional bourses. Top Gainers: Misc. Industry (+2.42%), Basic Industry (+0.66%), Consumer (+0.35%)Daily Foreign & Domestic Sector Movement
Foreign investors posted the net buy of IDR159 billion, with ASII (the automotive stocks) winning the preference as top-pick stocks---securing the biggest net buy. BNLI's divestment likely to spur ASII's performance by focusing only on automotive and heavy machinery businesses underlined the biggest net buy on ASII's stocks.
Meanwhile, domestic investors posted the net buy of IDR146 billion over banking stocks. The sliding banking stocks allured domestic investors to buy on weakness.
Today’s Outlook: Demand for CPO by China Soars 17%
We estimate today JCI rallies with the support range of 6380-6420 and the
resistance range of 6500-6520. The rally in JCI is backed by the positive
Company News
Domestic & Global News
Hike in Foreign Debt Is at Relevant Level
Bank Indonesia (BI) announced that the short-term foreign debt in November amounted to USD56.5 billion or increasing 3.78% higher than that of USD54.46 billion in October 2018. Compared to the debt in November 2017 amounting to USD56.29 billion, November 2018's figure was up 0.39%. The current foreign debt is still dominated by the long-term foreign debt. Per November 2018, the long-term foreign debt was at 84.8%, while the short-term debt was at 15.2%. From the solvability side, the foreign debt hovers at 34.5% to GDP. (Kontan)
Asia Markets Drowns in Confusion
Asia markets will post mixed amid the contradicting signal of the U.S. and China trade war resolution. Investors strive to know the progress of next week trade negotiation between the U.S. and China to be held on January 30-31, 2019 in Washington. Indeed, they also estimate that the U.S. current administration shutdown, the longest shutdown in the U.S. administration history, will hamper the U.S. economic growth. (Bloomberg)
ISAT : Allocates Capex to Reach IDR10 Trillion
ISAT allocates the capex of IDR10 trillion in 2019. Most of the capex is spent on the construction of new 4G base transceiver stations (BTS). Until September 2018, ISAT has 67,002 BTS across Indonesia. To obtain funds for the capex allocation, within the next two years, ISAT will issue bonds and sharia bonds (ijarah) worth IDR10 trillion. (Bisnis Indonesia)
ADHI : Collaborates to Develop 3 SPAM
ADHI will cooperate with ADRO to develop 3 water supply system (SPAM) projects in three different locations. Both companies have won IDR489-billion SPAM tender in Dumai, Riau and participated in SPAM project tender in West Karian and East Karian with the total investment worth IDR1,4 trillion. (Bisnis Indonesia)
SMBR : Fixes on Sales Growth of 20%
SMBR targets the 2019 sales volume growth of 20%. In 2018, it posted the sales volume growth of 26% to 2,18 million tons cement. The 2019 target aligns with the high demand for cement in Southern parts of Sumatra. Besides, it is awaiting the toll-road projects such as Palembang -Bengkulu and Palembang-Jambi toll roads. (Kontan)
SMRA : Boosts Its Recurring Incomes
Global Economic Calendar
Source: Bloomberg
Date Country Jakarta Hour Event Period Actual Consensus Previous
Monday CHN 09:00 Industrial Production YoY Dec 5.70% 5.30% 5.40%
21- Jan CHN 09:00 GDP YoY 4Q 6.40% 0.064 0.065
Tuesday USA Tentative Trade Balance Nov -$54.0b -$55.5b
22 - Jan USA Tentative Factory Orders Nov 0.30% -2.10%
USA Tentative Housing Starts Dec 1252k 1256k
USA Tentative New Home Sales Nov 567k 544k
USA Tentative Retail Sales Advance MoM Dec 0.001 0.002 USA Tentative Durable Goods Orders Nov F 0.80% 0.80% UK 16:30 Claimant Count Rate Dec 2.80% -- 0.028 UK 16:30 ILO Unemployment Rate 3Mths Nov 4.00% 4.10% 4.10% UK 16:30 Jobless Claims Change Dec 20.8k -- 21.9k GER 17:00 ZEW Survey Current Situation Jan 27.6 42.8 45.3 GER 17:00 ZEW Survey Expectations Jan -15.0 -18.8 -17.5 USA 22:00 Existing Home Sales Dec 4.99m 5.27m 5.32m USA Tentative Wholesale Inventories MoM Nov P 0.50% 0.80%
Wednesday USA 19:00 MBA Mortgage Applications 18-Jan -2.70% -- 13.50%
23 - Jan USA Tentative Wholesale Inventories MoM Nov F 0.005 --
Thursday JPN 07:30 Nikkei Japan PMI Mfg Jan P 50.0 -- 52.6
24 - Jan GER 15:30 Markit/BME Germany Manufacturing PMI Jan P 49.9 51.5 51.5
EU 16:00 Markit Eurozone Manufacturing PMI Jan P 50.5 51.4 51.4 EU 19:45 ECB Deposit Facility Rate 24-Jan -0.40% -0.40% -0.40% EU 19:45 ECB Main Refinancing Rate 24-Jan 0.00% 0.00% 0.00% USA 20:30 Initial Jobless Claims 19-Jan 199k -- 213k USA 21:45 Markit US Manufacturing PMI Jan P 54.9 53.5 53.8 USA 22:00 Leading Index Dec -0.10% -0.10% 0.20%
Friday JPN 06:30 Tokyo CPI Ex-Fresh Food YoY Jan 1.10% 0.90% 0.90%
25 - Jan GER 16:00 IFO Business Climate Jan 100.5 101
USA 20:30 Durable Goods Orders Dec P -- --
USA 22:00 New Home Sales Dec -- --
Corporate Calendar
Date Event Company
Monday Extraordinary Shareholder Meeting ITTG
21- Jan
Wednesday Rights Offerings SQMI
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