Mirae Asset Sekuritas Indonesia Daily Focus (June 2, 2017)
Research Team (firstname.lastname@example.org)
Market comment by Giovanni Dustin (email@example.com)
We expect JCI to trade flat today. We also expect a slow day for oil-related stocks (i.e. commodities), as global crude oil price continue its declining trend, triggered by higher production from key producers. However, we believe that macro trends still pin points to a positive outlook for Indonesia. As a reminder, MSCI rebalance may kick in today (effective date June 1, however, Indonesia was closed yesterday), but we suspect most investors to have already positioned ahead since MSCI rebalance announcement on May 15.
JCI: 5,738.16 (+0.78%)
EIDO: 26.90 (+1.28%)
DJIA: 21,144.18 (+0.65%)
FTSE100: 7,543.77 (+0.32%)
USD/IDR: 13,307 (-0.12%)
10yr GB yield: 6.95% (-1bps)
Oil Price: 48.36 (+0.08%)
Foreign net purchase: -IDR476.6bn
Foreign net purchase on single stocks (HOTS screen #0141)
TOP BUY: INTP, BUMI, WSBP, MEDC, DOID
TOP SELL: BBCA, BBRI, ASII, LPKR, LPCK
Most actively traded stocks (HOTS screen #0102)
BBCA, TLKM, BBRI, INTP, HMSP
Mirae Asset Sekuritas Indonesia Equity Movers
Investment Information Team (firstname.lastname@example.org)
*U.S. crude-oil inventories drop 6.4 million barrels last week: EIA
*ISM May new orders up 2 points to 59.5%
*Construction spending falls 1.4% in April
*May ISM manufacturing was 54.9%, versus forecast of 55%
*May final manufacturing PMI was 52.7
*LSIP +2.6%. London Sumatra will distribute IDR35 per share dividend, equivalent to 40% of its 2016 net profit.
*BISI +7.7%. Sales of corn seeds grew 38.7% in 1Q17.
*KRAS +24.2% amid sentiment of downward in steel raw material prices which will benefit producers.
*BRMS +8.9%. EGM approved Bumi Resources Minerals' plan to issue 36.75 billion B series of shares without HMETD at an exercise price of IDR84 per share.
*ANTM +5.4%. Aneka Tambang started sales of low grade nickel ore overseas after receives the recommendation of mineral ore exports from the Ministry of Energy and Mineral Resources.
*GIAA +1.6%. Garuda is preparing 61,324 seats for additional flights in anticipation of a passenger surge during the Lebaran season.
*PSAB -1.9%. J resources posted a decrease in sales by 22.9% yoy in 1Q17 to USD49.8 million.
Daily write up
Garuda Indonesia (GIAA) - Interview with the new CEO: Clearer skies ahead by Taye Shim (email@example.com)
- We recently sat down with the new CEO of Garuda Indonesia, Mr. Pahala Mansury, to discuss his strategy for the airline.
- “5 Quick Wins Priority” program: Fleet cost optimization (renegotiations with 27 lessors to reduce aircraft rental costs), cost reduction (reducing overall cost structure), route optimization (implement a better route strategy and enhance connectivity by improving aircraft utilization), enhancing value from subsidiaries (increase subsidiaries’ revenue contributions and reduce their costs), and revenue management system enhancement (enhance distribution channels)
- The new CEO also aims to improve the corporate culture, revisit the loyalty program, and improve the overall customer experience.
- We reiterate our Buy recommendation and expect to see clearer skies ahead.
LSIP disburses IDR35 per share dividend (Kontan)
PT PP London Sumatra Indonesia Tbk (LSIP) disburses IDR35 per share dividend. Total dividend value is IDR237.53bn, equivalent to 40% of net profit 2016.
Build mini plant, DPUM needs IDR700bn (Kontan)
PT Duta Putra Utama Makmur Tbk (DPUM) will intensively do expansion until next year. The proof is this fishery company has calculated capital expenditure budget in 2018 will reach IDR700bn.
WSBP achieved IDR300bn loan from BRI syariah (Investor Daily)
WSBP has signed a loan facility of IDR300bn from Bank BRI Syariah. The loan will be used for financing the 2nd section of Cimanggis-Cibitung Toll Ways project.
June, PPRO aims to get marketing sales of IDR1.3tr (Investor Daily)
PPRO projects its marketing sales to reach IDR 1.2-1.3 trillion in June 2017. Until the end of April, marketing sales of PTPP subsidiaries has reached IDR900bn.
No option but Pancasila
Indonesia hopes to bring back past glory
Indonesians safely evacuated from Marawi
Platts approves RI’s Karimun in S’pore pricing
Gov’t, BI to fully apply e-tollgates in 2018
New regulation to boost geothermal exploration
Maritime highway unable to cut prices