Global Market Highlight
DJIA increased by +1.51% on Monday (28/09) followed by S&P 500 (+1.61%) and Nasdaq (+1.87%). The prospect of a big stimulus worth USD2.4 trillion became the main driver of the increase in global exchanges. Nancy Pelosi as the Chair of the Congress said that this stimulus could be approved even though the amount disbursed would be less, around USD1 trillion. Voting on the stimulus law will be held next week. Moreover, the market will look forward to several data releases today, such as: 1) US CB Consumer Confidence; 2) US Goods Trade Balance; 3) Eurozone Consumer Confidence.
Domestic Updates
BI announce that IDR662.1 trillion has been disbursed in the framework of National Economic Recovery (PEN) through quantitative easing. A budget of IDR419.9 trillion in the first phase was disbursed in the January-April 2020 period. This was done through the purchase of Government Securities (SBN) from the secondary market amounting to IDR166.2 trillion and banking term repo of IDR160 trillion. Then, there was a fix swap of IDR40.8 trillion and a decrease in Rupiah Statutory Reserves (GWM) in January and in April amounting to IDR53 trillion. For the second phase, IDR242.2 trillion was disbursed in the May-September 2020 period. This consists of a decrease in the Rupiah GWM in May 2020 of around IDR102 trillion and does not require additional current accounts for those who do not meet RIM of IDR15.8 trillion. Then there was also a banking term repo and FX swap amounting to IDR124.4 trillion.
Company News
1. BBYB IJ has officially went up to a BUKU II level bank after being acquired by PT Akulaku Silvrr Indonesia (Akulaku). This change has been approved by OJK as of September 18, 2020. BBYB's core capital increased to IDR1.09 trillion from IDR936.43 billion as of 30 June 2020, in line with the effectiveness of a rights issue. (IDN Financial) MNCS Comment: We see that the scope of BBYB's business activities has widened along with the change in the name of the bank, which was originally named PT Bank Yudha Bhakti Tbk to become PT Bank Neo Commerce Tbk. This corporate action was also strengthens the company to transform into a digital bank. BBYB is currently traded at 1.74x PBV.
2. MTLA IJ reported that hotel occupancy rates have fallen below 20% since the implementation of the PSBB. This causes the company to lose quite a lot of potential revenue from this sector. Meanwhile hotel revenue decreased by more than 50% in 1H20. Moreover, the hotel occupancy rate is currently showing an increase, although it has not fully recovered. However, the occupancy rate of company hotels in Bali has not shown a similar recovery (Market Bisnis). MNCS Comment: the potential risk of a further decline in occupancy is still open in 2H20, this is because PSBB is still ongoing due to the high spread of Covid-19. MTLA is currently traded at 18.64x/0.90x PE/PBV.
3. ASSA IJ recorded an increase on revenue significantly by 29.58% YoY to IDR1.4 trillion in 1H20. Revenue consists of car rental (45.76%), AnterAja/online logistic (19.24%), used car sales (14.21%), driver lease (9.56%), automotive auction (5.71%) and logistic (5.52%). Anter aja or the online logistic revenue is skyrocketing by 4,514% YoY while auto auction also increased by 50.15% YoY. Due to an increase on expenses, ASSA recorded a decrease on net profit by -58.34% to IDR17.67 billion in 1H20 (Investor Daily). MNCS Comment: We see that the need for online services specifically logistic is increasing during the pandemic as people's mobility is limited. So the logistic business is clearly in favour this season, reflected in the towering increase on online logistic revenue of ASSA. ASSA is currently traded at 18.96x/1.31x PE/PBV.
IHSG Updates
JCI slipped by -0.79% to 4,906.55 on Monday (28/09) still followed by net foreign sell reaching IDR593.12 billion. The Regional Asia indices movement were indifferent, as there has been no catalyst in the market. The weakening is led by the finance and miscellaneous industry while mining, infrastructure and property sector grew. Meanwhile, the Rupiah exchange rate was weakening at IDR14,900. We estimate JCI will move in the range of 4,900 - 5,000 while waiting for Money Supply data release. Today's recommendation: MAPI, MDKA, BBRI, INCO.
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