The JCI January 24, 2020

Jᴀɴᴜᴀʀʏ 24, 2020

* Tʜᴇ JCI ᴛʀᴀᴅɪɴɢ ʀᴀɴɢᴇ:  6,215ᴘᴛ – 6,285ᴘᴛ(Yᴇsᴛᴇʀᴅᴀʏ ᴄʟᴏsᴇ: 6,249ᴘᴛ)

* Wᴀʟʟ Sᴛʀᴇᴇᴛ ᴍᴀᴅᴇ ɪᴛ ꜰʟᴀᴛ ᴡʜɪʟᴇ ᴄᴀᴜᴛɪᴏᴜs ᴏɴ Cᴏʀᴏɴᴀᴠɪʀᴜs ᴏᴜᴛʙʀᴇᴀᴋ ꜰʀᴏᴍ Cʜɪɴᴀ

* Tʜᴇ JCI ɪs ᴇxᴘᴇᴄᴛᴇᴅ ᴛᴏ ɢᴀɪɴ ᴇᴅɢᴇ ᴀᴍɪᴅ ʟᴏᴡᴇʀ ᴏɪʟ ᴄʟᴏsᴇ , 2ɴᴅ ᴅᴀʏs ᴄᴏɴsᴇᴄᴜᴛɪᴠᴇʟʏ

Morning,

The Jakarta Composite Index (JCI) today (24/1) is expected to be in the range of 6,215pt-6,285pt, likely to continue to gain edge amid lower oil close.  Yesterday (23/1), Wall Street ended flat  with the DJIA closed down by 26 points or 0.1% to 29,160pt, while in contrast the S&P500 and the Nasdaq both closed higher by 0.1% and 0.2% respectively.

Meanwhile, the WTI price settled at USD55.6/barrel yesterday, representing a decline of 1.9% against the previous close. At the other end, USDIDR closed at IDR13,626 yesterday  vs. IDR13,678 previous close.

Exᴄᴇʀᴘᴛ ғʀᴏᴍ Bᴀɴᴋ Iɴᴅᴏɴᴇsɪᴀ (BI) BOG ᴍᴇᴇᴛɪɴɢ Jᴀɴᴜᴀʀʏ 22-23

Extracting from  its January Board of Governors (BOG) media release yesterday (23/1), we gather the following:

#     Indonesia banking  is stretching positively, with credits grew at 7.05% YoY in November vs. 6.53% YoY in October, and Third Party Fund expanded by 6.72% YoY in November vs. 6.29% YoY in October. (2019  estimates:6.08% YoY for credits growth, and 6.54% for third party fund growth). At the other end, for 2019 estimates, bonds financing to grow by 7.6% YoY and Fintech by 141.5% YoY.

#     Given the above BI estimates domestic credits to grow by double digits 10%-12%, while Third Party Funds by 8%-10% this year.

#     Capital Adequacy Ratio in November last year was at 23.66%, while Non Performing Loans rate at 2.77% gross and 1.24% net,  indicating that both indicators more-than-sufficiently passed the safe levels.

#     Interest rates both for credits dan deposits have moved consistently with the central bank accommodative policy adopted since June last year.

The above, among others, being said that Indonesia equity investors to be appropriately-comforted to stay invested.

We advise the following recommendation for 1Q20. 𝐀𝐀𝐋𝐈, 𝐋𝐒𝐈𝐏 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘈𝘨𝘳𝘪, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘜𝘯𝘥𝘦𝘳𝘸𝘦𝘪𝘨𝘩𝘵 ), 𝐔𝐍𝐓𝐑, 𝐈𝐓𝐌𝐆, 𝐀𝐃𝐑𝐎, 𝐏𝐓𝐁𝐀 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘊𝘰𝘢𝘭 𝘔𝘪𝘯𝘪𝘯𝘨, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘔𝘢𝘳𝘬𝘦𝘵-𝘸𝘦𝘪𝘨𝘩𝘵), 𝐆𝐆𝐑𝐌, 𝐔𝐍𝐕𝐑, 𝐈𝐂𝐁𝐏 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘊𝘰𝘯𝘴𝘶𝘮𝘦𝘳, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘖𝘷𝘦𝘳𝘸𝘦𝘪𝘨𝘩𝘵 ), 𝐀𝐒𝐈𝐈 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘈𝘶𝘵𝘰𝘮𝘢𝘵𝘪𝘷𝘦, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘔𝘢𝘳𝘬𝘦𝘵-𝘸𝘦𝘪𝘨𝘩𝘵), 𝐚𝐧𝐝 𝐀𝐂𝐄𝐒, 𝐒𝐂𝐌𝐀, 𝐌𝐀𝐏𝐈 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘛𝘳𝘢𝘥𝘦, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘖𝘷𝘦𝘳𝘸𝘦𝘪𝘨𝘩𝘵),𝐚𝐧𝐝 𝐓𝐊𝐈𝐌 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘉𝘢𝘴𝘪𝘤 𝘐𝘯𝘥𝘶𝘴𝘵𝘳𝘺, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘔𝘢𝘳𝘬𝘦𝘵-𝘸𝘦𝘪𝘨𝘩𝘵).

Cheers,