Morning Brief
between the U.S. and China. Asia markets closed higher, led by China's markets. European markets closed lower, relating to the end of the European Central Bank's stimulus program. The U.S. markets closed mixed amid investor's expectancy of concrete trade resolution between the two countries.Today’s Outlook: The Rupiah Appreciation
We estimate that today JCI will rally with the support range of 6141-6150 and
the resistance range of 6209-6215. The better trade deals between the U.S. and
China has strengthened the rupiah. After weakening at 14,600 per USD, it strengthens to 14,500 per USD. We estimate the backdrop is a sign of investors' higher confidence and a mark of JCI's uptrend until the end of 2018.
From the global outlook, the pressure comes from the European Central Bank's stance of Quantitative Easing. However, we oversee that the stance has the
Stocks Recommendation
TLKM Last = 3750
Analysis The trend of the slowdown in TLKM's prices
since the mid of November has terminated. Investors digest its rosier performance, backed by its domination in the telecommunication industry after the SIM card registration.
Range 3710 – 3890
Action Trading Buy. Cut Loss If Below 3710
BBNI Last = 8550
Analysis BBNI has an excellent quality of credit assets.
Its NPL dramatically declines from 3.12% in the mid of 2016 to 2.07% at the current time. The backdrop causes its stock prices to rally further.
Range 8475 – 8900
Action Trading Buy. Cut Loss If Below 8475
MAPI Last = 800
Analysis The rupiah appreciation will boost MAPI's
operational business. Its market segment
consisting the middle to high-class individuals
are the major catalyst for its future performance.
Range 780 – 845
Action Trading buy. Cut Loss If Below 780
Source: Bloomberg Source: Bloomberg
Source: Bloomberg
Sector Rotation
Source: Bloomberg
Company News
Domestic & Global News
The World Bank Projects Indonesia's Economy to Grow by 5.2%
The World Bank projects Indonesia's economy to grow by 5.2% in 2018. It also projects that in the year ahead Indonesia's economy will grow at 5.2%. The economic growth is backed by high domestic demand, capable of cushioning external
volatility. According to the World Bank's report, Indonesia's economic growth after the last 5-quarter (since 3Q17), mainly
driven by the mining and infrastructure sectors. The main drivers are the improvement in investment in the private sector, increasing gross fixed capital. (Kontan)
European Central Bank Winds Down Stimulus
On Thursday, the European Central Bank said it’s bringing to an end a crisis-era bond-buying program this month. Bond
purchases by the ECB will fall from 15 billion euros ($17.04 billion) a month to zero by the end of December, but the central bank plans to spend cash from maturing bonds to purchase additional debt. The ECB also left benchmark interest rates unchanged. (CNBC)
GGRM : Acquires Lands for Developing An Airport
GGRM bought assets, i.e., land, for developing an airport in Kediri, East Java. The land amounts to IDR1.08 trillion and is bought through an affiliated transaction. The construction of this project is funded by the internal cash flow and has a minimum impact on its financial performance. The project is projected to complete in 2020. (Bisnis Indonesia)
MAPI : Is Primed to Welcome Year-End
MAPI prepares varied promotion program ahead to year
-end holidays. Besides, its online sales are also boosted by the national online shopping day (Harbolnas). Until the end of 2018, it targets the growth of 1% in revenues. For 2019, it targets the growth of 15% by launching stores of
50,000-60,000 sqm. (Kontan)
ELSA : Cooperates with Schlumberger
ELSA signed the working agreement with Schlumberger.
The agreement is a 5-year prolonged contract of
technology and resources, ELSA can make use. The agreement aims at increasing the national capacities at the upstream oil and gas, change in technology, and company's agility. The cooperation lasts for 33 years. (Bisnis Indonesia)
GIAA : Reopens Jakarta-London Route
GIAA re-opens Jakarta-London route, after closing the
route. The flight with Boeing 777-300ER consists of
economic and business classes and offers 3 flights in a
week. The reopening is at the moment of year-end
Global Economic Calendar
Source: Bloomberg
Corporate Calendar
Date Event Company
Monday Extraordinary Shareholder Meeting AGRO
10 - Dec Annual Shareholder Meeting DSNG
IPO Listing Date SOTS, URBN
Cum Dividend Date SCMA (IDR20 per share)
Tuesday Extraordinary Shareholder Meeting BJBR
11 - Dec Cum Dividend Date BATA (IDR8.7 per share)
INDY (IDR54.4 per share)
Cum Rights Offering Date META (1 per 6, subscription price IDR200)
Wednesday Annual Shareholder Meeting FISH
12 - Dec IPO Listing Date ZONE
Thursday Annual Shareholder Meeting BABP
13 - Dec Rights Listing Date IKAI
Friday Extraordinary Shareholder Meeting MAPB, NIPS
14 - Dec Annual Shareholder Meeting ADRO, CSIS
Source: Bloomberg
Date Country JakartaHour Event Period Actual Consensus Previous
Monday JPN 06:50 GDP SA QoQ 3Q F -0.60% -0.50% -0.30%
10 - Dec JPN 06:50 GDP Annualized SA QoQ 3Q F -2.50% -2.00% -1.20%
JPN 06:50 BoP Current Account Balance Oct ¥1309.9b ¥1410.2b ¥1821.6b
UK 16:30 Industrial Production MoM Oct -0.60% 0.20% 0.00%
Tuesday UK 16:30 Jobless Claims Change Nov 21.9k -- 20.2k
11 - Dec UK 16:30 ILO Unemployment Rate 3Mths Oct 4.10% 4.10% 4.10%
GER 17:00 ZEW Survey Expectations Dec -17.5 -24 -24.1
Wednesday JPN 06:50 Core Machine Orders MoM Oct 7.60% 10.10% -18.30%
12 - Dec JPN 11:30 Tertiary Industry Index MoM Oct 1.90% 1.00% -1.10%
USA 20:30 CPI MoM Nov 0.00% 0.00% 0.30%
Thursday GER 14:00 CPI MoM Nov F 0.10% 0.10% 0.10%
13 - Dec GER 14:00 CPI YoY Nov F 2.30% 2.30% 2.30%
EU 19:45 ECB Main Refinancing Rate 13-Dec 0.00% 0.00% 0.00%
EU 19:45 ECB Marginal Lending Facility 13-Dec 0.25% 0.25% 0.25%
EU 19:45 ECB Deposit Facility Rate 13-Dec -0.40% -0.40% -0.40%
USA 20:30 Initial Jobless Claims 8-Dec 206k -- 231k
Friday JPN 06:50 Tankan Large Mfg Index 4Q 19 18 19
14 - Dec JPN 07:30 Nikkei Japan PMI Mfg Dec P 52.4 -- 52.2
CHN 09:00 Retail Sales YoY Nov 8.80% 8.60%
CHN 09:00 Industrial Production YoY Nov 5.90% 5.90%
JPN 11:30 Capacity Utilization MoM Oct -- -1.50%
JPN 11:30 Industrial Production MoM Oct F -- 2.90%
EU 15:30 Markit Eurozone Manufacturing PMI Dec P 52 51.8
GER 15:30 Markit Germany Manufacturing PMI Dec P 52 51.8
USA 20:30 Retail Sales Advance MoM Nov 0.20% 0.80%
USA 21:15 Industrial Production MoM Nov 0.30% 0.10%
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