NH Daily February 21 2018 (English)

(1)

Morning Brief

_{Daily | Feb 21, 2018}

JCI closed lower yesterday. Investors digested the sluggish Asia markets amid

the strengthening dollar and day

-

off in the U.S. markets and Asia markets.

Top

Losers: Basic Industry (

-

1.38%), Consumer (

-

1.19%), Misc Industries (

-

1.14%).

Today’s Outlook: Release the Minutes of FOMC

We estimate JCI to lower with the

support range of 6608

-

6616 and resistance

range of 6684

-

6693

. The negative sentiment derives from the sluggish U.S.

markets and the rally in dollar spurred by the hike in the U.S. government bond

yield. The backdrop occurs amid the awaiting of the to

-

be

-

released minutes of

FOMC’s last meeting. On the other flip side, investors can focus on the mining

sector as the oil prices snap into further rally bolstered by the decline in the U.S.

oil inventory.

tumbling Walmart's shares and the impact of hiking government bond yield.

Europe

European markets rallied yesterday. Investors ignored the concerns about the

volatility and focused on the release of topping

-

estimate financial performance.

Asia

(2)

Stocks Recommendation

ITMG

Last = 29975

Analysis

Indonesia's coal export soared 445% w

-

w in

last week into 4.18 million tons. The export

volume was the highest level since December

11. Range

29600 – 31575

Action

Trading Buy. Cut Loss If Below 29600

MEDC

Last = 1275

Analysis

Global oil price hiked to USD61.79 per barrel,

the highest position within the last two weeks.

The hike was triggered by the decline in the

U.S. oil inventory.

Range

1240 – 1365

Action

Trading Buy. Cut Loss If Below 1240

BJTM

Last = 780

Analysis

BJTM has decided to distribute dividend of

IDR660 billion or IDR44 per share. The dividend

yield based on the last share price was 5.7%.

Range

765 -

810 Action

Trading buy. Cut Loss If Below 765

Source: Bloomberg

Sector Rotation

Source: Bloomberg

(3)

(4)

Company News

Domestic & Global News

Indonesia's Budget Deficit Narrows in January Thanks to Higher Oil Price

Indonesia ended the first month of the year with a lower budget deficit compared with the same period last year, as

windfall revenue from higher oil prices and a spike in tax receipts offset moderate spending by government agencies. As of

Jan. 31, the Ministry of Finance recorded a Rp 37.1 trillion ($2.7 billion) budget deficit, which represents 0.25 percent of

the country's gross domestic product. The budget deficit in the corresponding period a year earlier stood at Rp 44.9

trillion, or 0.33 percent of GDP. (Jakarta Globe)

Oil Rises on Report of Falling Stockpiles

U.S. crude prices rose on Tuesday on signs of inventory declines at a key storage hub and reduced supply from Canada to

the United States caused by pipeline reductions. The combination of a new pipeline running from the hub to Memphis,

along with reduced flows from TransCanada's Keystone pipeline, have sent stockpiles in Cushing to the lowest in about

three years. U.S. West Texas Intermediate (WTI) crude futures ended Tuesday's session up 22 cents at $61.90 a barrel, the

highest since Feb. 7. (CNBC)

TELE

: Will Issue Bonds of IDR2 Trillion

TELE planned to issue new bond with the maximum value

of IDR2 trillion. The proceeds of bond issuance will be used

for matured loan. The bond will be issued in the coming

second quarter. TELE will seek approval from the

shareholders in the EGM dated April 5, 2018. (Kontan)

SMBR

: Issue MTN of IDR400 Billion

SMBR just issued MTN. The proceeds from the MTN will

be used for the investing in new factory. The MTN worth

IDR400 billion has 3

-

year tenor and flat coupon of 9% per

year. (Kontan)

INDF

: Allocates IDR530 Billion for Developing Factory

INDF allocated the capex of IDR530 billion to develop two

new flour factories. The construction of the two factories

will be finished in 2018 and operate in full capacity of 750

tons per day. (Bisnis Indonesia)

SCMA

: Allocates Capex of IDR122 Billion

(5)

Global Economic Calendar

Date

Country

Hour

Jakarta

Event

Period

Actual

Consensus

Monday

JPN

06:50

Trade Balance

Jan

-

¥943.4b

-

¥979.7b

¥359.0b

19 -

Feb

JPN

06:50

Exports YoY

Jan

12.20%

10.00%

9.30%

JPN

06:50

Imports YoY

Jan

7.90%

6.70%

14.90%

Tuesday

JPN

13:00

Machine Tool Orders YoY

Jan F

48.80%

--

48.80%

20 - Feb

EU

22:00

Consumer Confidence

Feb A

0.1 --

1.3 Wednesday

JPN

07:30

Nikkei Japan PMI Mfg

Feb P

54.0 --

54.8

21 -

Feb

JPN

11:30

All Industry Activity Index MoM

Dec

--

1.00%

GER

15:30

Markit Germany Manufacturing PMI

Feb P

--

61.1 EU

16:00

Markit Eurozone Manufacturing PMI

Feb P

--

59.6 UK

16:30

Jobless Claims Change

Jan

--

8.6k

UK

16:30

ILO Unemployment Rate 3Mths

Dec

--

4.30%

USA

19:00

MBA Mortgage Applications

16 -

Feb

--

-

4.10%

USA

21:45

Markit US Manufacturing PMI

Feb P

--

55.5 USA

22:00

Existing Home Sales

Jan

5.60m

5.57m

Thursday

USA

02:00

FOMC Meeting Minutes

31 -

Jan

--

22 - Feb

UK

16:30

GDP QoQ

4Q P

--

0.50%

UK

16:30

GDP YoY

4Q P

--

1.50%

USA

20:30

Initial Jobless Claims

17 -

Feb

--

Friday

JPN

06:30

Natl CPI YoY

Jan

--

1.00%

23 - Feb

EU

17:00

CPI YoY

Jan F

--

1.40%

EU

17:00

CPI MoM

Jan

--

0.40%

Source: Bloomberg

Corporate Calendar

Date

Event

Company

Monday

Extraordinary Shareholder Meeting

LMAS, META

19 -

Feb

Tuesday

Annual Shareholder Meeting

BJTM

20 -

Feb

Extraordinary Shareholder Meeting

SCMA

Thursday

Extraordinary Shareholder Meeting

BINA, UNIT

22 -

Feb

Friday

Annual Shareholder Meeting

BIRD

23 -

Feb

Annual & Extraordinary Shareholder Meeting

PTIS

(6)

DISCLAIMER

This report and any electronic access hereto are restricted and intended only for the clients and related entity of PT NH

Korindo Sekuritas Indonesia. This report is only for information and recipient use. It is not reproduced, copied, or made

available for others. Under no circumstances is it considered as a selling offer or solicitation of securities buying. Any

recommendation contained herein may not suitable for all investors. Although the information here is obtained from reliable

sources, it accuracy and completeness cannot be guaranteed. PT NH Korindo Sekuritas Indonesia, its affiliated companies,

respective employees, and agents disclaim any responsibility and liability for claims, proceedings, action, losses, expenses,

damages, or costs filed against or suffered by any person as a result of acting pursuant to the contents hereof. Neither is PT NH

Korindo Sekuritas Indonesia, its affiliated companies, employees, nor agents liable for errors, omissions, misstatements,

negligence, inaccuracy arising herefrom.

PT. NH Korindo Sekuritas Indonesia

Member of Indonesia Stock Exchange

Head Office :

Wisma Korindo 7

th

_Floor

Jl. M.T. Haryono Kav. 62

Pancoran, Jakarta 12780

Indonesia

Telp: +62 21 7976202

Fax : +62 21 7976206

Branch Office BSD:

ITC BSD Blok R No.48

Jl. Pahlawan Seribu Serpong

Tangerang Selatan 15322

Indonesia

Telp : +62 21 5316 2049

Fax : +62 21 5316 1687

A Member of NH Investment & Securities Global Network

Seoul | New York | Hong Kong | Singapore | Shanghai | Beijing | Hanoi |

Jakarta

Branch Office Solo :

Jl. Ronggowarsito No. 8

Kota Surakarta

Jawa Tengah 57111

Indonesia