Global Market Highlight
DJIA rose by +0.38% on Tuesday (19/01) followed by S&P 500 (+0.81%) and Nasdaq (+1.53%). Wall street closed higher led by gains in energy and technology as well as growing optimism that more stimulus is about to be carried out under President-elect Joe Biden's administration. Janet Yellen, a Treasury Secretary, fully supported Biden's USD1.9 trillion stimulus proposal and pushed back against Republican who questioned the merit of adopting fiscal expansionary approach. Moreover, the market will look forward to several data releases today, such as: 1) US President Joe Biden Inauguration; 2) UK Inflation Rate; 3) Eurozone Core Inflation Rate.
Domestic Update
• Bank Indonesia released a Banking Survey which stated that the 1Q21 WNB new loan disbursement was 49.4%, an increase from 25.4% in 4Q20. This indicates that new credit disbursements will increase in 1Q21 driven by working capital loans, followed by investment loans and consumer loans.
• Furthermore, there was an addition of 2,563 new Covid-19 cases in Jakarta yesterday.
Company News
1. WIKA IJ formed a joint venture to carry out a project in the field of drinking water supply services with PT Jaya Konstruksi Manggala Pratama Tbk (JKON) and PT Tirta Gemah Ripah. The joint venture company is named PT Wika Tirta Jaya Jatiluhur. The initial capital deposit is IDR3 billion with 30% ownership in WIKA, 60% JKON and 10% Tirta Gemah Ripah. The formation of the joint venture was carried out on Friday, January 15, 2021 (Kontan). MNCS Comment: The WIKA steps are quite appropriate by conducting a joint venture, so that business risks can be diversified. Currently WIKA is trading at 281.47x/1.39x PE/PBV.
2. APLN IJ recorded marketing sales of IDR3.5 trillion in FY20 or exceeding the FY20 target of IDR 3 trillion. Of the total marketing sales, around 89% was obtained from the sale of 280 hectares of industrial land in Karawang, West Java. Then the rest from Podomoro Park in Bandung, Podomoro Golf View in Cimanggis and Podomoro City Deli Medan (Emitennews). MNCS Comment: This marketing sales achievement was quite good amidst the challenging business in FY20. APLN is currently trading at -7.56x/0.53x PE/PBV.
3. TRIN IJ recorded sales in December 2020 increase 125% MoM. The biggest sales were obtained from the sale of Triniti Land projects in Batam, namely Marc's Mixed Used Project, which contributed 53% of the total Marketing Revenue in December. Meanwhile, Collins Boulevard had a contribution of 23.3% (Kontan). MNCS Comment: The property sector did quite improve in 4Q20, due to the economic recovery. TRIN is trading at the level of 56.22x/1.49x PE/PBV.
IHSG Updates
JCI fell by -1.06% to 6,321.86 on Tuesday (19/01) although followed by net foreign buy reaching IDR262.83 billion. JCI dropped again as all sectors weakened while mining, property and basic industry sectors recorded the deepest decline. It seems that the domestic investors were profit taking as foreign investors still recorded a net buy. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,065. We estimate JCI will move in the range of 6,300 – 6,473 while waiting for motorbike sales data release. Today's recommendation: LINK, GGRM, PTBA, WSKT.
Corporate Action
RUPS: RELI, BRNA
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