Global Market Highlight
DJIA slipped by -0.38% on Tuesday (11/08) followed by S&P 500 (-0.80%) and Nasdaq (-1.69%). The weakening of the Dow was due to profit taking by investors after a long 7-day rally. This decline was led by the fall of Facebook and Amazon by 2%, followed by Apple (-3.4%) and Netflix (-3%). On the other hand, investors are still waiting for further US stimulus, which is still uncertain to face the pandemic. This uncertainty arises due to the absence of an internal agreement by the US government to issue new stimulus. Moreover, the market will look forward to several data releases today, such as: 1) US Inflation Rate; 2) China New Yuan Loans; 3) China FDI.
Domestic Updates
The Retail Sales Survey shows that the Real Sales Index in June 2020 contracted by -17.1% (YoY), which actually improved from a contraction of -20.6% (YoY) in May 2020. Improvements in sales occurred in almost all commodity groups, especially the category of motor vehicle fuels, food and beverages, tobacco, and communication equipment. Improvements are in line with the relaxation of PSBB. In July 2020, retail sales are forecasted to improve again to the contraction of -12.3% YoY.
Company News
IHSG Updates
JCI rose by +0.63% to 5,190.17 on Tuesday (11/08) although followed by net foreign sell reaching IDR703.34 billion. Stock prices continue to climb, boosted by a domestic sentiment while the regional Asia indices closes disparately. Bio Farma began conducting clinical trials on its vaccine candidates on 1,620 volunteers as a third phase clinical trial of a vaccine in collaboration with a biotech company from China, Sinovac. This collaboration for clinical trials was carried out by Bio Farma together with Padjadjaran University Faculty of Health. A production plan has also been prepared with a capacity of 100 million doses per year while there will be 250 million doses available per year in December. The news certainly provides a catalyst within the domestic market. Moreover, the Rupiah exchange rate was weakening at IDR14,680. We estimate JCI will move in the range of 5,130-5,200 while waiting for the release of balance of trade data. Today's recommendation: MAIN, RALS, BBRI, INDY.
Corporate Action
RUPS: BWPT, HERO, FAST
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