KDB Daewoo Indonesia Daily Focus (February 10, 2016)
Research Team (research@dwsec-id.com)

Market Indicator
JCI: 4,768.62 (-0.63%)
EIDO: 22.22 (+0.68%)
DJIA: 16,014.38 (-0.08%)
FTSE100: 5,632.19 (-1.00%)
USD/IDR: 13,612 (+0.11%)
10yr GB yield: 8.04% (+2bps)
Oil Price: 27.94 (-5.89%)
Foreign net purchase: IDR337.4bn

Market Comment by Dang Maulida (dangmaulida@dwsec-id.com)
The JCI is expected to trade slightly lower today on weak leads from the regional market with the DJIA closed at 16,014 (-13pts or 0.08%) yesterday. Meanwhile, Japan stock market also did not offer convincing lead within opening time this morning, with the Nikkei 225 traded within red and green zone, after closing lower by 5.4 % to 16,085 yesterday. The JCI is expected follow, trading within a narrow range, while still being supported by the euphoria of Indonesia better-than-estimated 4Q15 GDP figure (5.04% YoY actual vs. 4.8% YoY consensus’ estimate). At the other end, investors are tensed up ahead of testimony from Fed Chair Yellen, who is scheduled to speak before congressional committees today and tomorrow. Yellen is expected to attempt to balance the central bank's stated goal of raising interest rates against the risks of a weaker global economy. Meanwhile WTI closed to USD27.9/barrel yesterday (-5.89%), USD/IDR rate and 10yr government bonds yield both stable at IDR13,612, and 8.04%, respectively.

Foreign net purchase on single stocks (HOTS screen #0141)
TOP BUY: BBNI, ASII, PGAS, UNVR, BBTN
TOP SELL: TLKM, BBCA, ADHI, BMRI, ADRO

Most actively traded stocks (HOTS screen #0102)
BBNI, BBRI, TLKM, ASII, SSMS

Daily write up
$WTON: Better expectation by Mimi Halimin (mimi.halimin@dwsec-id.com)
- Bullish signal for infrastructure related companies. WTON’s share price performance went up approximately 17% YtD as of February 9, 2016 (vs. JCI at 3.8% YtD ).
- WTON booked IDR3.5tr new contract in 2015. For 2016, WTON is targeting IDR4tr new contract with IDR1.7tr carry over.
- Heated competition. We think WTON is a key beneficiary of the government’s infrastructure development agenda. However, we are a little bit concern about the precast competitive market recently.

<Market Headlines>

"With the help of foreign investment, more local productions can be created and exhibited." - Joko Anwar (Film director)

The purchasing power is still pressing retail sector (Kontan)
Listed retail sector’s companies are predicted to grow 15% after slowing down last year.

$WSKT will divest 10% stake Waskita Beton (Kontan)
The divestment is a strategy to be able to sell Waskita Beton Precast (WBP) to investors who will benefit WBP and taking off with the price of the deal. Besides giving value-added, this is also aimed to strengthen WBP’s capital.

Astra International ($ASII IJ) and Kawasan Industri Jababeka (KIJA IJ) are ready for port expansions (Investor Daily)
ASII and KIJA through each subsidiary are ready for port expansions in 2016.

Lippo Karawaci ($LPKR IJ) announces subsidiaries acquisitions (Investor Daily)
Lippo Karawaci (LPKR IJ) announces the acquisition plan of Lippo Mall Kuta by Lippo Mall Indonesia Retail Trust (LMIRT) and acquisition plan of Lippo Plaza Jogya and Siloam Hospitals Yogyakarta by LMIRT and First REIT respectively with total amount of IDR1.7tr.

Bank BTN ($BBTN IJ) targets net profit improvement of 40% (Investor Daily)
BBTN targets FY16 net profit to grow by approximately 40% compared to IDR1.85tr in FY15.

Bukit Asam ($PTBA) will disburse loan USD1.2bn loan from China (Bisnis Indonesia)
PTBA will disburse loas USD1.2bn from China bank to construct power plant in Banko Tengah.

Goodyear Indonesia ($GDYR) intensifies export this year (Bisnis Indonesia)
GDYR intensifies export to reach around 50-70% of total revenue this year.

BTN official launch digital services (Media Indonesia)
Bank Tabungan Negara ($BBTN) officially launched its digital service in all outlets of the company. BTN is optimistic set a target growth of third party funds (DPK) of 20% -21% this year, and the assets are expected to grow 18% -20%.

Government bank strengthened support KUR (Media Indonesia)
Assigned government-owned bank to extend credit (KUR). Fixed interest rate of 9% per year, plus without collateral for platfon less than IDR25mn, is expected to be easier for them to develop. Bank Mandiri until the end of 2015, has disbursed KUR IDR21,7tr to 466,946 deptor.

(Jakarta Post)
Fight against IS gains traction
Jero thanks Kalla, SBY for light sentence
Government not to grant KCIC exclusivity
Quick spending to lift growth above 5% in 1Q16
Government to grant incentives for Bontang refinery investors
BKPM relaxes factory construction stipulations
Local film industry backs increase in foreign investment

(Jakarta Globe)
Workers union KSPI crying wolf on layoffs: BKMP chief
‘Layoffs, yes, but nothing massive’: manpower minister
Breaking: former minister Jero gets four years for embezzlement
Terrorists, police officer killed in Poso terror raid
Amendment of anti-terror law may override fundamental human rights: HRW
No Indonesian deaths reported in Taiwan quake: manpower ministry
Government growth goal on track as infrastructure spending rockets in January