Global Market Highlights
DJIA fell -0.90% on Friday (9/12), followed by the S&P500 (-0.74%) and the Nasdaq (-0.70%). Wall Street corrected as investors worried about more aggressive monetary tightening by the Fed, after the release of PPI data in Nov-2022 growing +0.3% MoM/+7.4% YoY, or higher than consensus at +0.2% MoM/+7.2% YoY. Today, the market will be looking toward several data releases such as: 1) US Monthly Budget Statement Nov; 2) UK GDP YoY Oct; 3) UK GDP 3-month Avg Oct.
Domestic Update
• Bank Indonesia recorded retail sales performance in Oct-2022 growing +2.3% MoM/+3.7% YoY. MNCS Comment: This growth was supported by almost all retail sales sub-groups, especially Motor Vehicle Fuel (+3.21% MoM) and Clothing (+3.83% MoM). We expect retail sales to increase towards the end of the year in line with the festive season.
• Furthermore, the national Covid-19 daily rate had increased by 1,589 active cases (11/12).
Company News
1. INDY IJ did a bond buyback worth USD41.44 million (Emiten News). MNCS Comment: This amount is equivalent to ~3% of the company's total debt in 9M22. It is hoped that through the bond buyback, it can boost the company's profitability in line with reduced interest expenses, where interest expenses in 9M22 fell -5.7% YoY. Currently, INDY is traded at the level of 2.17x/0.90x PER/PBV.
2. LPPF IJ has opened 2 new outlets in North Sulawesi and Southeast Sulawesi (Kontan). MNCS Comment: This expansion marks the opening of the 7th and 8th outlets this year, bringing the company's total outlets to 146 outlets, or a difference of 2 outlets with the company's target of planning to open 10 outlets in FY22E. It is hoped that through the expansion of these outlets it can accelerate the company's revenue going forward. Currently, LPPF is traded at the level of 8.41x/27.55x PER/PBV.
3. BYAN IJ will distribute an interim dividend for the FY22E fiscal year worth USD1 billion (Investor ID). MNCS Comment: With the BI middle rate on December 9, 2022 of IDR15,624/USD and the outstanding share reaching 33.33 billion, the interim dividend distributed was IDR468.72 per share, or the dividend yield offered reached 3.46%. Currently, BYAN is traded at the level of 13.65x/12.66 PER/PBV.
IHSG Updates
JCI weakened -1.31% to 6,715.12 on Friday (9/12), followed by net foreign sell which reached IDR 1.92 trillion. All sectors weakened and weighed on the index, led by the energy sector (-2.58%) and followed by the technology sector (-1.77%). We see that market participants tend to wait and see ahead of the release of the US producer price index data in Nov-2022 which is estimated by consensus to increase +0.2% MoM (vs +0.3% MoM on the Oct-2022 realization). On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,583/USD. We estimate that the JCI will move in the price range of 6,690-6,753. Today's recommendation: BBRI, ESSA, LPPF, MEDC.
Corporate Actions
Cum Rights: SMGR (IDR6,600/share)
RUPS: AGII, WIIM
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