Market

Nickel ended at US$17,405 per ton on LME Friday (Jul 5), down 18% year-on-year due to a combination of softening in the global economy and ample of supply, particularly from Indonesia despite slow approval of 2024 work and budget by energy and mineral resources ministry (ESDM).

State pharmaceutical firm Indofarma (INAF) suffered net loss of Rp721 billion in 2023, widened from Rp457.6 billion loss in 2022, as net sales fell 46.6% year on year (y/y) to Rp523.6 billion. Combined various issues at sister company Kimia Farma (KAEF), the Prabowo-Gibran administration should make a decision on the future of state companies in the pharmaceutical sector.

MNC Land (KPIG) a member of MNC Group, is finalizing a series of projects in the MNC Lido City Special Economic Zone (SEZ). In the second half (H2) of this year, KPIG will present Trump International Golf Club-Lido, Trump Residences Lido, and Hyatt Regency Lido.

Shares of Cita Mineral Investindo (CITA), a bauxite miner with interest in Smelter Grade Alumina (SGA), ended flat at Rp2,270 on Wednesday (Jul 3) to make a market capitalisation of Rp9 trillion, less than twice its equity. 

Petrochemical firm Lotte Chemical Titan (FPNI) admitted that the market situation is not good, and that everybody in the industry suffered from it. The company, whose parent builds a new multi billion dollar petrochemical complex in Banten province, said sluggish global economy hurts the industry. 

Telco tower operator Dayamitra Telekomunikasi (MTEL) or Mitratel plans to issue bonds worth Rp2.5 trillion and sukuk (Islamic bonds) worth Rp500 billion. It will issue phase I of sustainable bonds in 2024 with a maximum principal amount of Rp240.22 billion, having an interest rate of 6.5% with a term of 370 calendar days. MTEL said all funds obtained from bond and sukuk offering will be used to repay part of the principal loan to Bank Mandiri (BMRI).

Rupiah has regained grounds to trade below Rp16,400 per USD on Monday (Jul 1), but still far away from the assumption used to compose the State Budget 2024 (Rp15,000 per USD). Movement of commodities, unfortunately, might only intensify concerns about the country’s fiscal sustainability.

Shares of market leader Siloam Hospital (SILO) ended higher by 3.33% to Rp2,790 on Monday (Jul 1) as Singapore-based Sight Investment, controlled by CVC Capital Partners, launched a voluntary tender offer on up to 45% shares. Sight had previously purchased 10.4% shares of Siloam at Rp2,850 per share.

Politically-connected coal miner Adaro Energy Indonesia (ADRO) said its subsidiary PT Alam Tri Abadi (ATA) and PT Indoprima Niaga Sejahtera (INS), a 65% indirectly owned entity, have signed a loan agreement under which ATA granted to INS a loan amounting to Rp136.17 billion.