Global Market Highlight
DJIA rose by 0.11% on Monday (04/05) followed by the strengthening of S&P 500 (+0.42%) and Nasdaq (+1.23%). The strengthening index is supported by the recovery of some technology stocks namely, Microsoft (+2.4%), Netflix (+3%), Apple (+1.4%) and Facebook (+1.4%) despite the downtrend of aviation sector stocks. On the other hand, the US President’s claims against the new coronavirus strains increase the fear of investor but still not enough to shake the market. The market is expecting a few data releases today, namely: 1) US Balance of Trade per Apr-2020; 2) US ISM Non-Manufacturing PMI per Apr-2020; 3) UK PMI Markit Composite per Apr-2020.
Domestic Updates
1. BPS released core inflation as of Apr-2020 which grew by 2.85% YoY. Compared to Mar-2020 (+0,29% MoM), this month’s inflation is lower at 0.17% MoM. This number indicates anomalies as usually the number grows with Ramadan coming near followed by a surged of demand for goods and services. Core inflation is supported by inflation on gold jewellery and sugar which contributes 0.06%/0.02% to the total inflation, respectively. 87 out of 90 cities recorded a rise of gold prices with Semarang being the highest (+16% MoM).
2. Indonesia PMI Manufacturing is at the level of 27.5 per Apr-2020. This number is way below last month at 43.5 and became the lowest number since the survey started on Apr-2011. This is due to Covid-19 pandemics that obliged citizens to do social distancing and large-scale social restrictions which caused a slow demand and hampered production activities.
Company News
1. PGAS recorded a decline on revenue by 0.28% YoY on 1Q20 amounting to USD873.8 million. Revenue consists of gas sales (USD693.4 million), oil sales (USD76 million) followed by oil and gas transmission sales (USD70.4 million). Meanwhile, net profit slipped by 26.62% YoY to USD47.77 million compared to USD65.09 million on 1Q19. (Market Bisnis)
2. APLN posted revenue of IDR3.79 trillion (-24.65% YoY) on FY19. This is caused by a decrease on apartment sales (-41.39% YoY), residential home sales (-62.02% YoY), home office sales (-26.85% YoY) and offices sales (-84.24% YoY). Thus, net profit decreased by 41.29% YoY to IDR120.81 billion on FY19. (Kontan)
3. IKAI reported a significant increase in revenue by 649.29% YoY to IDR84.52 billion on FY19. The increase is dominated by hotel revenue of IDR81.18 billion (+1,111.64% YoY vs IDR6.7 billion on FY18) which contributed 96.05% to revenue. While ceramic sales (IDR3.36 billion) only contributed 3.97% to revenue. However, the revenue growth was followed by COGS and financial expense growth of 308.86% YoY/ 500.78% YoY. So that IKAI booked a net loss of IDR67.57 billion on FY19 (vs a net profit of IDR71.64 billion on FY18). (Kontan)
IHSG Updates
JCI decrease by -2.35% to 4,605.49 on Monday (04/05) followed by a net foreign sell reaching IDR121.6 billion. The decrease is due to some negative sentiments from the data released such as: 1) Low Inflation Rate, which indicates that the people’s purchasing power has not yet revived; 2) Lowest PMI Manufacturing in history, which indicates a slow down in economic activities like never before. Meanwhile, the rupiah exchange rate against the USD was depreciated at IDR15,100. We estimate JCI will move in the range of 4,550-4,700 while waiting for the GDP Growth Rate as of 1Q20. Today's recommendation: AKRA, WSKT, ACES, BRPT.
Corporate Action
Cum-Date: BJTM
Cash Dividend: SIDO, INDY
Disclaimer On
