Global Market Highlight
DJIA rose by +0.85% on Tuesday (30/06) followed by S&P 500 (+1.54%) and Nasdaq (+1.87%). Stock rose broadly as market wrapped up its best quarterly performance in more than 20 years amid concern over new Covid-19 cases and geopolitical tension with China. DJIA ended the 2Q20 with a 17.8% gain, the average’s biggest quarterly rally since the first quarter of 1987, when it popped 21.6%. In addition, the European Government launched a stimulus: EUR600 billion of funds to purchase financial assets through the Pandemic Emergency Purchase Program (PEPP) so that liquidity in the market increased. Moreover, the market will look forward to several data releases today, such as: 1) US PMI Manufacturing; 2) Japan Consumer Confidence per Jun-2020; 3) Eurozone PMI Manufacturing.
Domestic Updates
BI releases the broad money supply (M2) which was recorded at IDR6,468.2 trillion in May 2020 or grew by 10.4% YoY. This is higher than the previous month's growth of 8.6% YoY. The accelerated growth of M2 was caused by an increase in all its components, both money supply in the narrow sense (M1), quasi money, and securities other than shares. M1 growth increased from 8.4% YoY in April 2020 to 9.7% YoY in May 2020, due to an increase in Rupiah demand deposits. In addition, quasi money growth was recorded at 10.5% YoY in May 2020, an increase from the previous month's growth of 8.5% YoY. Securities other than shares also grew 37.5% YoY in May 2020, higher than the growth in the previous month of 20.6% YoY.
Company News
1. AMRT IJ achieved revenue of IDR19.33 trillion in 1Q20, an increase of 15.66% YoY from IDR16.72 trillion in 1Q19. But along with the increase in revenue, the cost of revenue also rose 15.71% YoY to IDR15.40 trillion from IDR13.31 trillion in 1Q19. Net profit was recorded at IDR350.40 billion in 1Q20, an increase of 73.71% YoY from IDR201.71 billion in 1Q19. (Emiten News) MNC Comment: AMRT performance is still very solid with double digit growth, which was supported by the goods sold by AMRT are being used daily and still being sought by customer regardless of the circumstances. AMRT is currently traded at 4.65x PBV.
2. LPKR IJ recorded a revenue increase of 8.5% YoY in 1Q20 to IDR3.10 trillion. This increase was supported by Real Estate Development revenue which increased 12.3% YoY to IDR678 billion. Healthcare revenue also increased by 9.7% YoY to IDR1.88 trillion. However, due to foreign exchange losses of IDR2.39 trillion, LPKR recorded a net loss of IDR2.12 trillion in 1Q20. (Kompas) MNC Comment: LPKR revenue increase was supported by revenue from Orange County Estates and healthcare business segment. LPKR is currently traded at 0.46x PBV.
3. PEHA IJ will distribute a total dividend of IDR71.4 billion. The total dividend distributed was 70% of last year's net income. Dividend per share is at the level of IDR85.03/share, the dividend yield is 6.62%. Cum date will fall on July 3, 2020. (Kontan) MNC Comment: PEHA maintain their dividend payout ratio at 70%, but dividend yield is lower due to a decrease in net income. PEHA is currently traded at 1.37x PBV.
IHSG Updates
JCI was flat by +0.07% to 4,905 on Tuesday (30/06), Followed by net foreign sell reaching IDR489.10 billion. JCI flat movement due to the profit taking done by the investors as the foreign investor still recorded a consecutive net sales on 2nd session. Furthermore, there is an addition of 1,293 Covid-19 Cases in Indonesia making the total reached 56,385 cases. Meanwhile, the Rupiah exchange rate against the USD was weakening at IDR14,265. We estimate JCI will move in the range of 4,862-5,020 while waiting for inflation and Indonesia PMI data releases.Today's recommendation: BMRI, ANTM, JPFA, ACES.
Corporate Action
Recording Date: SMGR, TLKM, EPAC
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