The Dow Jones advanced 1.51% to 24,133 amid the 1Q20 earnings season. Partial states government of the U.S. to reopen the economic lockdown boosted investors?optimism. A glance at the national economy, indices listed on Indonesia Stock Exchange (IDX) recorded minor corrections, i.e., LQ45.
POJK Number 12/03/2020 on Commercial Banks Consolidation to require banks to have the core capital of IDR3 trillion at minimum has banks aggressively expand their businesses and maintain efficiency and profitability. Those aggressive business expansion causes higher risks. However, the implementation of POJK Nomor 12/POJK.03/2020 has no significant impacts on Bank Central Asia Tbk (BBCA IJ) as one of BUKU IV banks with the core capital higher than IDR30 trillion. Indeed, BBCA IJ is proven to be pretty capable of maintaining CoF efficiency and NIM profitability. NHKSI recommends BBCA as this week뭩 top-stock pick, projected to reach the target price of IDR32,000 with the P/BV target of 4.2x.
The Dow Jones picked up 1.11% to 23,775, backed by the rally in Apple inc. (+2.89%) and Microsoft (+1.83%). A glance at the national economy, OJK signed POJK Number 16/POJK.04/2020 on E-AGM. The POJK is a relaxed regulation for companies with respect to the economic lockdown to end COVID-19’s vicious spread.
The Dow Jones closed flat at 0.17 percent to 23,515 after WHO reported Gilead’s COVID-19 drug remdesivir to fail the first random clinic test. In the domestic economy, data of Ministry of Industry disclosed a number of manufacturing industries to prove their agility of dominating export markets regardless the global lockdowns of economic activities.
The Dow Jones was rebound by 1.99% to 23,475 after the U.S. Senate unveiled more relief stimulus of USD484 billion to support micro businesses hit hardest by the virus containment. A glance at commodities, prices of crude oil was rebound from the negative zone but still left jitters of global oversupply.
The Dow Jones dropped by 2.67% to 23,018 as the virus shock slashed prices of crude oil. A glance at domestic economy, the Indonesian government in compliance with Decree of the Supreme Court Number 7/P/HUM/2020 official revoked hikes in January’s 2020 BPJS Kesehatan premium.
The Dow Jones dipped 2.44% to 23,650 as prices of crude oil fell to the negative level for the first time. WTI futures prices for May 2020 contract plunged to -SD37.63 per barrel as the coronavirus pandemic cut demands, while Brent futures prices conversely was stable still at USD22.74 per barrel. The record-low prices of crude oil are likely to subdue stocks of oil and gas.
President Joko Widodo revised the 2020 state budget to contain the virus spread and stimulate economic growth. The Financial Services Authority (OJK) and IDX regulations of stock buyback without AGM were responded by WIKA, WSKT, PTPP, and ADHI to include in BUMN Karya. WIKA recorded FY19’s higher profit of 26%, backed by projects from Joint Operation (JO) and Operational Cooperation (KSO). NHKSI recommends WIKA as this week’s top stock pick estimated to reach the price target of IDR1,770 based on an 8.1x P/E trailing band.
The Dow Jones advanced by 2.99% to 24,242, backed by stocks of Boeing Co. (+14.72%) and Exxon Mobile Corp. (+10.40%). Besides, Trump’s plan to unlock the economic quarantine and hopes on Gilead-produced remdesivir to treat patients infected by COVID-19 boosted the Dow Jones to the green zone. In the domestic backdrop, S&P Global Ratings revisions to Indonesia’s global outlook was the main highlights.
