Global Market Highlights
DJIA strengthened +0.30% on Tuesday (13/12), followed by the S&P500 (+0.73%) and the Nasdaq (+1.01%). Wall Street continued its gains after the release of US inflation data in Nov-2022 slowed to +7.1% YoY (vs +7.7% YoY in Oct-2022), and was below the consensus at +7.3% YoY. Today, the market will be looking toward several data releases such as: 1) US Fed Interest Rate Decision; 2) UK Inflation Rate YoY Nov; 3) UK Core Inflation Rate YoY Nov.
Domestic Update
• Indonesia's trade balance in Nov-2022 is predicted to shrink. MNCS Comment: The consensus estimates that Indonesia's trade balance in Nov-2022 is USD4.25 billion, a decrease from the realization in Oct-2022 of USD5.67 billion as commodity prices such as coal have declined.
• Furthermore, the national Covid-19 daily rate had increased by 2,117 active cases (13/12).
Company News
1. INCO IJ will allocate capex of USD110 million in FY23F (Kontan). MNCS Comment: The capex allocation slightly decreased from the target in FY22E, which was USD120 million. The decline was due to the rebuild process in Furnace 4. INCO is currently being traded at the level of 20.99x/2.03x PER/PBV.
2. ASII IJ reports up to 11M22, car sales reached 519,085 units (Market Bisnis). MNCS Comment: ASII car unit sales grew +18.6% YoY (vs 437,795 units in 11M21), in line with growth in the domestic car sales industry (+19.2% YoY in 11M22). In addition, ASII also maintained its share of the domestic car market at 55.1%. Currently, ASII is traded at the level of 7.58x/1.25x PER/PBV.
3. TMAS IJ will distribute an interim cash dividend of IDR298.26 billion or equivalent to IDR52.28 per share (Investor ID). MNCS Comment: Therefore, TMAS will offer a dividend yield of 2.6%. With net profit in 9M22 reaching IDR1.0 trillion, the payout ratio is 29.2%. Currently, TMAS is traded at the level of 8.36x/5.16 PER/PBV.
IHSG Updates
JCI strengthened +1.13% to 6,810.32 on Tuesday (13/12), followed by net foreign sell which reached IDR1.74 trillion. The majority of sectors experienced strengthening and drove the index rate, led by the technology sector (+4.33%) and followed by the financial sector (+1.66%). On the other hand, the sectors that experienced weakness were the property sector (-0.89%), followed by the infrastructure sector (-0.48%). We see that market participants tend to be optimistic ahead of the release of US inflation rate data in Nov-2022 which is estimated by consensus to slow down to 7.3% YoY (vs 7.7% YoY in Oct-2022 realization). On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,657/USD. We estimate that the JCI will move in the price range of 6,750-6,847. Today's recommendation: BEST, IMAS, MDKA, TLKM.
Corporate Actions
Cum Dividend: BFIN (IDR28/share), TOWR (IDR6/share)
Cum Rights: EXCL (IDR2,080/share)
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