Category: Market

Ceramic and tile producer Arwana Citramulia (ARNA) booked a net profit of Rp160.14 billion in the first nine months to September (9M) of 2019, grew 38.1% from Rp115.94 billion in the corresponding period of 2018. Net sales rose 11.6% to Rp1.63 trillion from the previous Rp1.46 trillion.

Global markets may get support from a deal on the long-awaited Brexit deal, on Britain’s departure agreed with the European Union. The Brexit deal sent sterling to a five-month high on Thursday and hoisted European stocks to a 1-1/2-year peak before doubts about U.K. parliamentary support brought them back to earth, Reuters reported.

Metro Pacific Investment Corp (MPIC), controlled by Salim Group, divested its shares in Philippine-based hospital operator Metro Pacific Hospital Holdings Inc (MPH), to KKR & Co and Government of Singapore Investment Corp (GIC) for US$680 million value, equivalent 35.3 billion pesos.

Whatever might happen to the Corruption Eradication Commission (KPK), Unilever will not leave Indonesia because of its huge contribution to the parent company in Netherlands. In the first nine months of 2019, Unilever Indonesia paid out Rp2.15 trillion of service fees and royalties to its parent and associated entities. The giant consumer goods player also paid out Rp5.9 trillion of dividends to shareholders in the period, jumped from Rp3.8 trillion in the corresponding period last year.

National cement consumption declined 2.1% to 48.7 million tons per end of the third quarter (Q3) of 2019, from 49.7 million tons in the corresponding period of 2018, led by a correction in Java, Sumatera, and Kalimantan. That said, Maluku, Papua, Nusa Tenggara, and Bali reported positive growth. The growing political tension affected the weak cement consumption in the first half (H1) of the 2019 period, but it rebounded in the second half (H2) due to massive infrastructure projects. 

The latest Banking Survey conducted by the Central Bank (Bank Indonesia/BI) revealed how new loan growth decelerated in the third quarter (Q3) of 2019, with respondents nevertheless expecting growth to regain upward momentum in the fourth quarter (Q4) of 2019. 

The International Monetary Fund (IMF) made a fifth-straight cut to its 2019 global growth forecast, citing a broad deceleration across the world’s largest economies as trade tensions undermine the expansion. IMF published its World Economic Outlook and downwardly revised its global economic growth forecast to 3%, the slowest pace since the 2008 financial crisis.

A Brazilian company joined with nickel miner Vale Indonesia (INCO) in building smelter with an investment of US$5 billion. Vale’s vice president director Febriany Eddy said both parties would discuss the composition in a new joint-venture company.

Global markets gained on Tuesday (Oct. 15) along with the trade deal development and positive Brexit talk, which are good for world growth. Wall Street Wall Street advanced on Tuesday as third-quarter reporting season hit with a spate of upbeat earnings reports that brought buyers back to the equities market.

PT Dayamitra Telekomunikasi (Mitratel)—a unit of state-owned telecommunication provider Telkom Indonesia (TLKM)—and tower operator Profesional Telekomunikasi Indonesia (Protelindo) acquired 3,100 towers owned by cellular company Indosat (ISAT) for Rp6.39 trillion, representing 54.3% of Indosat’s equity (per June 2019 Rp5.88 trillion).

The Ministry of Energy and Mineral Resources (ESDM) signed contracts for the gross split of Selat Panjang PSC in Riau with PT Sumatra Global Energi and Zamatra Bakau Straits Ltd. This PSC contract will run for 20 years. The exploration commitment for this PSC is valued for US$74 million and a signature bonus of US$5 million. As the operator, Zamatra Bakau Straits holds 75% participating interest in said PSC, while Sumatra Global Energi holds the rest 25%.

A gauge of global equity markets was little changed on Monday (Oct.14) as investors sought details of a trade agreement between the United States (U.S.) and China. U.S. President Donald Trump signaled that Washington and Beijing had taken the first major step in easing tit-for-tat tariff measures.