Market movements this week will be influenced by the release of domestic economics data such as the Consumer Confidence Index (CCI) and foreign exchange reserves. We project that the June 2020 CCI will be better, as some business activities are reopened. The consumer confidence is also supported by better Indonesian manufactures. IHS Markit records that the Indonesian manufacturing PMI in June is at level 39.1. Meanwhile, the increase of economic activities are expected to push loan demands for business. The government through PMK Number 70/PMK.05/2020 is trying to facilitate loans to MSMEs, and subsidized home ownership loans with long tenure. On the other hand, with the low loan demands, this policy is facing the challenge of NPL. Until the end of May 2020, BBCA has received loan restructure requests amounting to IDR92.09 trillion. With that in mind, we recommend BBCA as our stock pick with a target price of IDR30,100 using forward assumption P/B 4.4x.

Weekly’s Top Stock Pick : BBCA
Support : 27925
Resistance : 30175

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