JAKARTA (TheInsiderStories) – Here’s several news could affect stock market condition compiled by our team and Mandiri Sekuritas :
*The government and the House of Representatives Commission XI will conduct deliberations on the Act No. 20 of 1997 regarding Non-Tax Revenues starting next week. Director General for Budget of the Ministry of Finance Askolani said the revision of the regulation focused on the improvement of the mechanism for drafting non-tax revenues rates charged to each of the ministries or agencies. During this time, any applicable tariffs will be evaluated every five years and the government wants to be accelerated evaluation every two years. In addition, preparation of the tariff should also consider the condition of the industry and government needs. In the draft bill, non-tax rates to be set in terms of specific tariff and based on a certain percentage. Regarding the amount, will be determined by government regulation (PP). Lastly, the government wants no clear division between the MoF and the ministries and the agencies.
*The government allowed private sugar mills directly importing raw sugar to be processed white sugar without through the intermediary of SOEs. Permission was granted as an incentive so that manufacturers and distributors of imported sugar to agree on the maximum sugar price Rp12.500/kg. Currently, issuers that do business sugars are PT Lautan Luas Tbk (LTLS, Rp378) and PT Tunas Baru Lampung Tbk (TBLA, 1,200).
*BPJS Ketenagakerjaan plans to allocate 1% portfolio investment in the property. During 2016, the share of investment BPJS Employment is a deposit of 12%, state debentures (SUN) 62%, 18% stocks, mutual funds 7%, and 1% of direct investment. The returns on investment (return) BPJS Employment last year had reached 9.43%.
*Financial Services Authority is projected that by 2017 there will be a new consolidation in the banking sector. Irwan Lubis, Deputy Commissioner of Banking Supervision said that in total there are actually five bank mergers will happen this year. The first merger between PT Bank Dinar Tbk and PT Bank Andara with new investors from South Korea’s APRO Financial. Second is the merger of PT Bank Windu Kentjana Tbk and Pt Bank Antar Daerah by China Construction Bank. The third is the merger of PT Bank Metro Express and PT Bank Centratama National Bank with investors from South Korea, Shinhan Bank. Fourth is the merger of PT Bank Ekonomi Raharja Tbk with HSBC Bank.
*PT Timah Tbk (TINS, Rp1.130) will increase capital expenditure form Rp 1 trillion in 2016 to Rp2.6 trillion in this year. TINS plans to increase production of tin by + 20% to 300,000 tonnes this year. TINS was estimated to sell 31,000 tons of tin.
*PT Bank J Trust Indonesia Tbk (BCIC, Rp50) will be a rights issue to meet the rules relating to the free float (public ownership) of at least 7.5% of the total outstanding shares. Currently, BCIC finalizing the sale of shares of the Deposit Insurance Agency (LPS), which has not been completed as well as prepare plans rights issue.
*PT Plaza Indonesia Realty Tbk (PLIN, Rp4.850) will buyback shares. Wishy also providing a reserve fund of about Rp937-2 billion. The number of shares repurchased approximately 8% of the capital or 284 million shares. Maximum repurchase price of Rp3.300 per share.
*Crude oil prices fell after the Executive Director of the IEA Fatih Birol said that the strengthening of oil prices would trigger an increase in US shale oil production significantly. West Texas Intermediate oil for February delivery fell US$1.40 or 2.7% to $51.08 per barrel on the New York Mercantile Exchange. Meanwhile, Brent oil for March delivery fell $1.55, or 2.8%, to $53.92 a barrel on the ICE Futures Europe exchange based in London. Earlier, Saudi Arabia said production cuts beyond the agreement and strong demand helped the market back toward balance. The OPEC secretary general Mohammed Barkindo said that OPEC will wait to decide whether the agreement production cuts will be extended for six months.
* The rate of the gold price began to hiccup with the price of gold on the spot market was steady at US$1,216. While the price of gold futures rose 0.2% to $1,215.60. The rate of gold is stagnating due to the uncertainty of economic policy plans of President Donald Trump and his claim about the dollar.
*Exports of crude palm oil (CPO) to Europe are threatened because of their anti-palm oil campaign in the EU who do not keep stopping because of health issues about food products that use oil. In 2016, CPO exports to the EU only 3.3 million tons, down dramatically from 2015, which reached 26.4 million tons.