JCI Indication

Bullish (Moderate)

Support / Resistance: 6,246 – 6,324

Market Drivers:
BREXIT
- Queen Elizabeth II approves PM Boris Johnson’s plan to suspend parliament,
- PM Boris Johnson has scheduled the formal reopening of parliament for October 14
- Increased expectations of a no-deal Brexit
- But also increases the chance that Johnson could face a vote of no-confidence in his government, and possibly an election

South Korea
- Has drafted the most aggressive budget spending plan since the 2008-2009 GFC
- MOF would propose to parliament a budget bill of 513.5 trillion won (USD423.45 billion)
- +8.0% from this year when including the extra budget for 2019, and up 9.3% excluding it.
Welfare, job creation, small businesses, environment and R&D projects

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MARKET NEWS
BUMI
BUMI is targeting to pay off Tranche A debt of around USD 200-250 mn until January 2020 and has already been paid USD 145 million in June 2019. This year the company is targeting free cash flow of USD 180-230 million to refinance debt. To improve performance, the company maintains a fixed production target of 80-90 mn tons from KPC and AI.

INCO
In line with Perpres of Electric Cars, the company has previously built project  facilities at Pomalaa as raw materials for car batteries electricity. The company is targeting to obtain an additional supply of 40 th tons per year from matte nickel production of 70 th tons per year from Sorowako as one of the basic ingredients of electric cars.

ELSA
ELSA plans to expand by asset revitalizing of Pertamina's fuel terminal and acquire assets of the Amurang LPG depot in Minahasa for IDR 200 bn. The company is currently also building a storage tank with ANTM in East Halmahera with the project target to be completed by the end of this year.

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Technical Recommendations :

Stock: *INCO*
Short Term Trend: Downtrend
Medium Term Trend: Bullish
Trade Buy : 3,330
Target Price 1: 3,450
Target Price 2: 3,540
Stop Loss: 3,220

Stock: *MEDC*
Short Term Trend: Downtrend
Medium Term Trend: Bearish
Spec Buy : 745
Target Price 1: 770
Target Price 2: 795
Stop Loss: 715

Stock: *RALS*
Short Term Trend: Downtrend
Medium Term Trend: Bearish
Spec Buy: 1,225
Target Price 1: 1,270
Target Price 2: 1,330
Stop Loss: 1,190

PT Phillip Securities Indonesia
ANZ Tower Level 23B, JlJendSudirman
Kav. 33A Jakarta 10220 – Indonesia
Tel +62-21 5790 0800 Fax +62-21 5790 0809
Website: www.phillip.co.id