08 Mei 2020
MNCS Morning Navigator 08 May 2020
Global Market Highlight
DJIA increased by 0.89% on Thursday (07/05) followed by the strengthening of S&P 500 (+1.15%) and Nasdaq (+1.41%). The strengthening index is supported by the increase of some tech stocks namely Apple (+1.4%), Facebook (+0.1%), Amazon (+0.1%), and Alphabet (+0.1%). While the rise was followed by hotel stocks such as Hilton Worldwide (+1.6%) and MGM Resorts (+7.3%) amid gradual re-operating of businesses. On the other hand, the US unemployment recorded an additional of 3.17 million of jobless citizens last week, reaching 33.5 million of unemployment in the last seven weeks. The market will look forward to several data releases today, such as: 1) UK Consumer Confidence per Apr-2020; 2) US Consumer Credit Change per Apr-2020; 3) US Unemployment Rate per Apr-2020.
Domestic Updates
BI Consumer Survey on April 2020 indicates optimism towards the current economic condition. This is reflected on Consumer Confidence Index of 84.8 on April 2020, although the number weakened from 113.8 on March 2020. The weakening is due to the decline on consumer perception of current economic conditions, with the deepest decline in the current income index and availability of employment. Meanwhile, consumers are still relatively optimistic about the forecast of economic conditions in the next 6 months. This optimism is underpinned by an estimate of rising incomes and business activity that has recovered in the next 6 months, in line with the expected easing of the COVID-19 pandemic in Indonesia.
Company News
- JPFA plans to do a buyback amounting to IDR350 billion. The buyback maximum amount is 2.5% of the paid in capital. The buyback will be approved on the extraordinary shareholders meeting on June 18, 2020. The buyback will run for 18 months from June 22, 2020 to December 18, 2021. (Kontan)
- SGRO booked an incline on revenue by 19.36% YoY to IDR903.87 billion on 1Q20 (vs IDR757.25 billion on 1Q19). Palm oil products remain as the main contributor to revenue with sales amounting to IDR875.55 billion (+19.14% YoY) on 1Q20. However, other expenses grew significantly to IDR124.38 billion from IDR724 million in 1Q19. So net profit dropped by 88.20% YoY to IDR423 million on 1Q20 from IDR3.58 billion on 1Q19. (Market Bisnis)
- SRIL recorded revenue of USD1.2 trillion on FY19, increased by 14.30% YoY from USD1.03 trillion on FY18. Meanwhile, COGS and operating expense increased by 28% YoY/141.35% YoY respectively. Thus, net profit reached USD87.65 million (+3.66% YoY) on 1Q20 from USD84.55 million on 1Q19. (Market Bisnis)
IHSG Updates
JCI dropped by -0.46% to 4,608.79 on Wednesday (06/05) followed by a net foreign sell reaching IDR289.05 billion. The weakening index was in-line with the weakening of Asian indexes while the global indexes rise. This is due to the drop on the Consumer Confidence index to below 100, reflecting the decline in the optimism towards economic condition which further suppressed the index movement. Meanwhile, the Rupiah exchange rate against the USD was appreciated at IDR14,995. We estimate JCI will move in the range of 4,570-4,650 while waiting for the Current Account as of 1Q20. Today's recommendation: ASII, AALI, BBNI, MAPI.
Corporate Action
Cash Dividends: BJTM, BNGA
RUPS: DIGI
Disclaimer On
ASII,
AALI,
BBNI,
MAPI,
JPFA,
SGRO,
SRIL
