Today we estimate JCI to rally with the support range of 6008-6015 and

(1)

Morning Brief

JCI continued to rally after the net foreign buy of USD54.8 million, the highest

since July 26th.

Top Gainers: Infrastructure (+1.85%), Mining (+0.78%),

Consumer (+0.57%)

The U.S. stocks notched higher after snapping to the highest position.

Meanwhile, the global stocks snapped mixed. The global markets cheered the

success of the trade negotiation between the U.S. and Mexico, and expected

that the to

-

be

-

conducted trade negotiation between the U.S. and Canada will

run smoothly.

Today’s Outlook: Expectancy of the U.S. and Canada Trade Deal

Today we estimate JCI to rally with the

support range of 6008

-

6015

and

resistance range of 6083

-

6096. The positive sentiment arises from the positive

update of trade deal in the areas of North America. After reaching trade deal

with Mexico, the U.S. is estimated to reach another trade deal with Canada.

Investors responded to the positive result of trade deals as a stimulus capable of

subduing the jitters arising from the global trade war tensions.

From domestic outlook, the positive sentiments come from the foreign net buy

of USD54.8 million on yesterday’s trading session. The figures were the highest

level within the last one month, and signaled the recovery in foreign investors’

confidence of Indonesia market.

(2)

Stocks Recommendation

AALI

Last = 12800

Analysis

Indonesia’s CPO exports of July was 2.8 million

tons, the highest since August 2017. The

figures soared higher than June’s CPO exports

of 2.3 million tons. The higher surge was the

higher demand for CPO by India.

Range

12550 – 13325

Action

Trading Buy. Cut Loss If Below 12550

INCO

Last = 3910

Analysis

The global nickel prices nudged up to near 2%

underpinned by the expectancy of higher

demand for nickel amid the subdued jitters

arising from trade war.

Range

3870 – 4070

Action

Trading Buy. Cut Loss If Below 3870

TLKM

Last = 3460

Analysis

The steep decline in TLKM’s stocks since July is

estimated to reach its climax. The movement

of TLKM’s stocks is estimated to hike along

with the healthier cellular competition in

Indonesia to start in the 2H18.

Range

3540 – 3730

Action

Trading buy. Cut Loss If Below 3410

Source: Bloomberg

Sector Rotation

Source: Bloomberg

(3)

(4)

Company News

Domestic & Global News

Consumption of Subsidized Fuel Reaches 10 Million KL in August 2018

The Downstream Oil and Gas Regulatory Agency (BPH Migas) recorded that in August 2018, the realization of particular

type of fuels or subsidized fuels such as diesel and kerosene reached 10 million KL. The consumption reached 66.28% of

the national subsidy of fuel quota of 16.23 million KL set forth in APBN. In detail, the diesel consumption was 9.7 million KL

and kerosene was 346,000 KL. (CNBC Indonesia)

US Hopeful Get Deal With Canada

Treasury Secretary said he's hopeful a revamped trade deal will get done soon with Canada but if not the U.S. is ready to

go forward with one it already has negotiated with Mexico, the third partner in the NAFTA bloc. The statements came a

day after the White House announced it had reached the Mexico deal, which President Trump says supersedes NAFTA.

(CNBC)

PPRE

: Targets Transportation Contract of IDR1.5

Trillion

PPRE is targeting the additional contract of IDR1

-

1.5 trillion

in the mining service or coal transportation segment in the

end of 2018. It also allocated the investment funds of

IDR300

-

400 billion to increase the number of its heavy

machinery to reach 900 units in 2018. Thus, it

comprehensively targets the new contract of IDR7.5

-

8 trillion until the end of 2018. (Bisnis Indonesia)

SGRO

: Posts Decline of 40.2% in Net Profit

SGRO posted the decline of 17.3% y

-

y to IDR1.33 trillion

and 40,2% y

-

y to IDR88.5 trillion in the 1H18’s sales and

net profit, respectively. The underperformance was

attributable to the decline in commodity price.

Meanwhile, the production volume of CPO and palm

kernel hiked by 14% y

-

y to 155,000 tons and 17% y

-

y to

36,000 tons, respectively. (Kontan)

DILD

: Postpones Global Bonds Issuance

DILD postponed the global bonds issuance due to the

volatile market and fluctuating rupiah exchange rate. Thus,

it remains to be reliant on the facilities from local bank and

focuses on its business operational until the end of 2018.

(Kontan)

GGRM

: Allocates Funds of IDR1 Trillion

GGRM spent the investment funds of IDR1 trillion on the

initial development of Kediri

-

based airport, particularly

(5)

Global Economic Calendar

Date

Country

Hour

Jakarta

Event

Period

Actual

Consensus

Monday

GER

15:00

IFO Business Climate

Aug

103.8

101.8

101.7 27 - Aug

Tuesday

EU

15:00

M3 Money Supply YoY

Jul

4.00%

4.30%

4.40%

28 -

Aug

US

21:00

Conf. Board Consumer Confidence

Aug

133.4

126.5

127.4 Wednesday

US

18:00

MBA Mortgage Applications

24 -

Aug

--

4.20%

29 -

Aug

US

19:30

GDP Annualized QoQ

2Q S

4.00%

4.10%

Thursday

GER

19:00

CPI YoY

Aug P

2.00%

30 -

Aug

US

19:30

Personal Income

Jul

0.40%

US

19:30

Personal Spending

Jul

0.40%

US

19:30

Initial Jobless Claims

25 -

Aug

--

210k

Friday

JPN

06:30

Jobless Rate

Jul

2.40%

31 -

Aug

JPN

06:50

Industrial Production MoM

Jul P

0.20%

-

1.80%

CHN

08:00

Manufacturing PMI

Aug

51

51.2 UK

13:00

Nationwide House PX MoM

Aug

0.00%

0.60%

US

20:45

Chicago Purchasing Manager

Aug

63

65.5 US

21:00

U. of Mich. Sentiment

Aug F

95.7

95.3 Source: Bloomberg

Source: Bloomberg

Domestic Economic Calendar

Date

Hour

Jakarta

Event

Period

Actual

Consensus

Prev.

Friday

Tentative

Money Supply M2 YoY

Jul

--

5.90%

(6)

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