Global Market Highlight
DJIA decreased by -0.59% on Friday (30/10) followed byS&P 500 (-1.21%) and Nasdaq (-2.45%). US stock indexes closed lower on Friday to cap Wall Street's biggest weekly sell-off since March, as losses in richly priced tech heavyweights, a record rise in Covid-19 cases pushed US hospitals to the brink of capacity as Covid-19 cases surpassed 9 million, while jitters over the presidential election snuffed investor sentiment. Moreover, the market will look forward to several data releases today, such as: 1) US ISM Manufacturing PMI; 2) China Caixin Manufacturing PMI; 3) Eurozone Markit Manufacturing PMI.
Domestic Update
The government plans to increase the tariff for palm oil or crude palm oil (CPO) in FY21F. The CPO export duty rates will use a progressive tax scheme, namely a tax levy rate with a percentage based on the number or quantity of tax objects and based on the price or value of the tax object. The export duty rate is progressive for CPO around USD12.5 per USD25 price increase. Meanwhile, for CPO derivative products in liquid form, it is subject to USD10 per USD25 increase.
Company News
IHSG Updates
JCI dropped by -0.31% to 5,128.23 on Tuesday (27/10) though followed by net foreign buy reaching IDR108.24 billion. JCI dropped slightly on the last trading day of the week as local investor seems to be taking profit approaching the long weekend although Agriculture sector is inclining supported by the La Nina weather which will cause lower production on CPO. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,625. We estimate JCI will move in the range of 5,060 – 5,160 while waiting for core inflation data release. Today's recommendation: BBRI, AALI, MAPI, PTPP.
Corporate Action
Cum Date Dividend: SIDO (IDR12.5/share)
RUPS: BBSI, BRAM
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