JCI is expected to trade limitedly higher today ~ KDB Daewoo Indonesia

8:27 AM | December 15, 2015 BERITA No Comments

Market Indicator
JCI: 4,374.19 (-0.44%)
EIDO: 19.54 (+1.19%)
DJIA: 17,368.50 (+0.60%)
FTSE100: 5,874.06 (-1.32%)
USD/IDR: 14,122 (+0.93%)
10yr GB yield: 9.07% (+35bp)
Oil Price: 36.31 (+1.94%)
Foreign net purchase: -IDR467.2bn

Market Comment by Dang Maulida (dangmaulida)

The JCI is expected to trade limitedly higher today. Positive sentiment from the US market (DJIA closed by +103pt or 0.6% higher to 17,369) will likely be capped by weakening of two Indonesia main macro indicators. First, USD/IDR weakened by 0.93% to IDR14,123 (vs. previously 13,993).

Second, 10 year government bonds yield increased to 9.067% vs. 8.722% previously, an increase of 35bp or 3.95%. Meanwhile, WTI price underwent technical rebound yesterday to reach USD36.3/barrel, an increase of 0.69% from the previous day.

Daily write up Wijaya Karya (WIKA IJ): 3Q15 improvement

by Maxi Liesyaputra (maxi)

– Decline in 9M15 performance, but improved in 3Q15: 9M15 net profit declined by 2.5% YoY to IDR390.5bn, related to a jump in interest expenses of 186% YoY to IDR263.2bn. Net profit in 3Q15 soared by 37% QoQ and 61% YoY to IDR190bn.

– 10M15 new contracts of IDR15.3tr: In 10M15, WIKA posted new contracts of IDR15.3tr, an increase of 13% YoY.

– Update on the high-speed rail project: WIKA has a 38% stake on PT Pilar Sinergi BUMN Indonesia or PSBI to develop high speed rail (HSRW) from Jakarta to Bandung. The project is expected to be completed in 1H19.

Market Headlines
ERAA is optimistic to achieve the 2015 target (Kontan)
Comment: ERAA is optimistic to achieve the net profit’s target of IDR225bn at the end of this year. (9M15 net profit: IDR164.47bn).

Semen Baturaja is targeting 1.75mn cement production (Kontan)
Comment: SMBR is targeting production of 1.75mn tons of cement in 2016. This target is 16.67% higher than the forecasted production realization this year, which is 1.5mn tons of cement.

Ciputra Development (CTRA) targets marketing sales to grow by 5-6% next year (Bisnis Indonesia)
Comment: CTRA still expects uncertainty in the economy, and target marketing sales to increase by 5-6% next year.

Bank Tabungan Negara (BBTN) expects credit growth of 19-21% next year (Bisnis Indonesia)
Comment: BBTN expects credit growth of 19-21% next year, higher compared to this year’s estimate of 18-20%.

Waskita Beton targets contracts of IDR5tr (Kontan)
Comment: PT Waskita Beton Precast, a subsidiary of Waskita Karya (WSKT IJ), targets new contracts of IDR5tr and carry-over of IDR3tr in 2016.

Budi Starch (BUDI IJ) allocates capital expenditure (capex) of IDR200bn (Kontan)
Comment: Budi Strach & Sweetener (BUDI IJ) allocates capex of IDR200bn in 2016. The capex will be used for operating activities of IDR117bn and completion of two plants development.

Timah (TINS IJ) has conservative target in 2016 (Kontan)
Comment: Timah (TINS IJ) targets export volume of 20,000 tons in 2016, the same with 2015 target. Tin market in 2016 is expected to be still sluggish.

BRI mastered Bringin Jiwa Sejahtera (Media Indonesia)
Comment: After going through the planning and calculation, Bank Rakyat Indonesia (BBRI) officially took over a majority stake Asuransi Jiwa Bringin Sejahtera (BJS) previously owned by the Pension Fund (Dapen) BRI. Post-acquisition of a majority stake BJS amount of 91% or IDR1,6tr.

Certification will be free to use the green industry (Media Indonesia)
Comment: Ministry of Industry to encourage green industry patterns in an effort to boost the competitiveness of Indonesian products to the export market. One way to eliminate companies that wish to obtain certification of green industry for 2016.