JAKARTA (TheInsiderStories) - Here’s some news compiled by Mandiri Sekuritas and other sources that may affect market trading today:
*Fitch Ratings assess the decision of the Ministry of Transport to suspend the application of the new rules Permenhub No. 32/2016 on transportation service providers based applications can increase uncertainty on taxi operators and increase the pressure on their credit profile. The rule was planned to apply on Oct 1, but it is postponed until April 1, 2017.
*Fitch Ratings assess the oversupply in the Indonesian cement industry is likely to persist in the medium term, although there was improvement sales this year. It will continue to put pressure on the operating margin cement producers who have increased their production capacity more rapidly than the volume of sales in the last 2-3 years. The new capacity will be effective next year.
*PT Sido Muncul Tbk (SIDO) plans to sell treasury shares. Previously, the company had bought back a stake of 259.8 million shares in March. The company also has appointed PT Mandiri Sekuritas to perform the transfer or sale. The timing of the sale of shares from the date of Oct. 25, 2016 to Oct. 24, 2018. SIDO has spent Rp 133 billion to repurchase it. The average price of the share buyback is in the position of Rp511.84 per share. The assumption by the current stock price SIDO sales value of the treasury shares could reach Rp 143 billion.
*Coordinating Ministry for Maritime ensure fast train project Jakarta-Surabaya will involve a lot of investors. Development of fast train themselves gradually. Currently, the Ministry of SOEs create a joint venture with the Chinese government. Where, the state is represented by PT Wijaya Karya (WSKT, Rp2.630, BUY, TP Rp3,200), PT KAI, PTPN VII, and PT Jasa Marga Tbk (JSMR, Rp4.670, NEUTRAL, TP Rp.5,300). The cooperation is done with China Railway International Co. Ltd as well as forming companies namely PT Kereta Cepat Indonesia China (KCIC) in building a fast train from Jakarta to Bandung.
*PT Kawasan Industri Jababeka Tbk (KIJA, Rp292) released the senior notes with worth US$186 million, with a tenor of 7 years until 2023. It is the realization KIJA plans to issue notes as much as US$200 million. The new notes coupon of 6.5%. This is lower than the old notes, 7.5%. The notes released to replace the senior notes of US$260 million maturing in 2019.
*Prices of palm oil declined after rising inventories in Malaysia as the second largest producer in the world. However, the future supply is still predicted to decline, so that it can sustain the increase in prices.
*PT Waskita Concrete Precast Tbk (WSBP, Rp575) bagged new contracts worth Rp 7.45 trillion at the end of September 2016. With this achievement, a subsidiary of PT Waskita Karya Tbk (WSKT, Rp2.630) has been successfully met 93.38 % of target acquisition contract this year which reached Rp 8 trillion.
*There is still the oversupply in the cement industry by the end of this year, are a barrier to the sales performance of PT Indocement Tunggal Tbk (INTP, Rp17.800, NEUTRAL, TP Rp20.200). The sales volume for the period (year to date) in August 2016 about 10.3 million tons. The figure was down about 1% from the same period last year at 10.4 million tonnes. Market share also fell by 1% from 27% to 26% ytd in August 2016.
*Sales of motorcycles (2W) in Sep16 555.800 units, + 5% MoM/-8% YoY. 2W sales in 8M16 period accounted for 4.3 million units, -10% YoY compared to 4.8 million units in 8M15.
*PT Bukit Asam Tbk (PTBA, Rp10.850, NEUTRAL, TP Rp9,200) expects to immediately realize the increase in transport capacity of coal this year. PTBA owned target-carrying capacity can be increased to 50% from 15.8 million tons in 2015 to 23.7 million tonnes at the end of 2016.
*PT Nusa Raya Cipta Tbk (NRCA, Rp470) will be aggressively working on infrastructure projects. The subsidiary PT Surya Semesta Internusa Tbk (SSIA, Rp555, Neutral, TP 700) will be encouraged to hunt projects both in the capacity as contractor and investor.
*Issuers coal mine belonging to the Bakrie Group, PT Bumi Resources Tbk (BUMI, Rp75) to record the sale of shares of PT Newmont Nusa Tenggara in the financial statements of US $ 425 million equivalent of 5.5 trillion. (*)
Source: Mandiri Sekuritas