Global Market Highlights
DJIA gained +0.30% on Friday (11/08), while the S&P500 (-0.11%) and Nasdaq (-0.68%). Wall Street closed mixed, as investors' concerns grew after the release of producer price inflation data in Jul-2023 of +0.3% MoM, higher than the consensus estimate of +0.2% MoM. In addition, Michigan consumer sentiment prel in Aug-2023 also fell to the level of 71.2 (vs Jul-2023 : 71.6). Today, the market will be looking toward several data releases such as: 1) US Consumer Inflation Expectations Jul-2023; 2) US 6-Month Bill Auction; 3) Germany Wholesale Prices Jul-2023.
Domestic Update
• Bank Indonesia noted that based on transaction data from August 7 - 10, 2023, non-residents on the domestic financial market recorded a net sell of IDR14.59 trillion, consisting of a net buy of IDR1.45 trillion on the government bond market and a net sell of IDR16.04 trillion on the stock market. MNCS Comment: Significant outflow on the stock market in line with negotiable transactions on GEMS shares. Meanwhile, the bond market is still recording inflows, reflecting the still attractive yields on SUN. It was recorded that the yield on SBN on 10-Aug was at the level of 6.31%, an increase from the previous week's position (6.27%).
Company News
1. MAPB IJ plans to conduct a private placement by issuing 217 million shares and an exercise price of IDR2,000 per share (Emiten News). MNCS Comment: We see that this can increase trading liquidity and fulfill free float requirements. With an estimated funding of IDR434 billion, we anticipate the outlet expansion that will be carried out by the company in the future to drive the growth engine. Currently, MAPB is traded at the level of 39.90x/3.77x PER/PBV.
2. ASII IJ has officially acquired 100% ownership in OLX (Emiten News). MNCS Comment: We see this as strengthening the Astra Group's ecosystem portfolio, especially in the digital classifieds sector. In addition, the presence of OLX is expected to be able to support other Astra Group businesses, especially in trade-in facilities. Currently, ASII is traded at the level of 7.83x/1.47x PER/PBV.
3. WIKA IJ recorded a new contract value of IDR11.47 trillion up to 1H23 (Emiten News). MNCS Comment: The new contract value in 1H23 fell -16.9% YoY (vs IDR13.8 trillion in 1H23). Meanwhile, with the target value of new contracts in FY23E reaching IDR36 trillion, the realization until 1H23 was only 31.9%. Currently, WIKA is traded at the level of 0.31x PBV.
IHSG Updates
JCI weakened -0.19% to 6,879.98 on Friday (11/08), followed by net foreign sell reaching IDR278.8 billion. A number of sectors experienced weakening and weighed on the index, led by the technology sector (-0.83%) followed by the health sector (-0.78%). On the other hand, sectors that experienced strengthening were led by the raw materials sector (+1.07%) followed by the cyclical sector (+0.70%). The index weakened along with the majority of other Asian exchanges, where investors were watching the slowing down of China's credit growth in Jul-2023. The Rupiah closed lower at IDR15,215/USD. We estimate that the JCI will move in the price range of 6,863-6,915. Today's recommendation: AGII, APLN, ARTO, MTEL.
Corporate Actions
RUPS: ASII, VICI, WIFI
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