Global Market Highlight
DJIA rose by +1.62% on Thursday (14/05) followed by the strengthening of S&P 500 (+1.15%) and Nasdaq (+0.91%). These indexes rise after a 3-day downtrend amidst bad news from the US, one of which came from the Fed that stated recoveries from Covid-19 in the economic will take longer than expected. This is also followed by the unending trade war between China and the US, with President Trump vent the Covid-19 outbreak towards China. The market will look forward to several data releases today, such as: 1) Eurozone GDP Growth per Apr-2020; 2) US Retail Sales per Apr-2020; 3) China Unemployment Rate per Apr-2020.
Domestic Updates
The Government disbursed IDR34.1 trillion to help Small Medium Enterprises (SME) facing the Covid-19 and revive the domestic economy. The budget will be provided through tax and interest rate subsidy. The government will bear 0.5% taxes for SMEs whose revenue are below IDR4.8 billion per year. Citizen loans (KUR) or equivalent in the amount of IDR10 million to IDR500 million will receive a 6% subsidy in the first 3 months and a 3% subsidy in the following 3 months. Whereas for loans of IDR500 million and up to IDR10 billion will receive a 3% subsidy in the first 3 months and a 2% subsidy in the following 3 months. Furthermore, micro businesses will receive a 6% interest subsidy for 6 months
Company News
IHSG Updates
JCI dropped by -0.89% to 4,513.83 on Thursday (14/05) followed by a net foreign sell reaching IDR955.57 billion. The index decreased amidst the weakening on the Asian indexes, despite the rise of the US indexes. This is still caused by the rising fear among the investors towards the second wave outbreak of coronavirus and the uncertainty on economic recoveries. Meanwhile, the Rupiah exchange rate against the USD was depreciated at IDR14,885. We estimate JCI will move in the range of 4,474-4,590 while waiting for the Current Account as of 1Q20 and Balance of Trade as of April 2020. Today's recommendation: WIKA, BRPT, ERAA, SMGR.
Corporate Action
Cash Dividends: PTRO
Ex-Date Dividend: TOWR
RUPS: TINS
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