Global Market Highlights
DJIA strengthened +1.60% on Wednesday (21/12), followed by the S&P500 (+1.49%) and the Nasdaq (+1.54%). Wall Street managed to continue strengthening after the release of CB Consumer Confidence data in December 2022 which increased to a level of 108.3 points, or exceeded the Nov-2022 realization and consensus of 101.4/101 points, respectively. Today, the market will be looking toward several data releases such as: 1) US GDP Growth Rate QoQ Final Q3; 2) US Core PCE Prices QoQ Final Q3; 3) UK GDP Growth Rate YoY Final Q3.
Domestic Update
• Bank Indonesia will determine the benchmark rate decision (BI7DRR) for Dec-2022 today. MNCS Comment: The consensus projects that BI will increase the BI7DRR by +25 bps to 6.25% as a step to anchor the inflation rate and strengthen Rupiah stability by maintaining attractive spreads with an FFR of ~175 bps.
• Furthermore, the national Covid-19 daily rate had increased by 1,123 active cases (21/12).
Company News
1. TLKM IJ through its entity NeutraDC is building a data center in Batam, with an investment of USD198 million (Kontan). MNCS Comment: In the initial stage, TLKM will complete the data center with a capacity of 17 MW from the final capacity of 51 MW in 2Q24. We view positively that this might further strengthen TLKM's business line, where currently, the company is reported to have 28 data centers. Currently, TLKM is traded at the level of 16.98x/3.04x PER/PBV.
2. ASLC IJ targets used car sales growth of +75% to 100% YoY in FY23F (Emiten News). MNCS Comment: We view the used car market in FY23F will increase as the domestic new car sales market recovers, where it is approaching pre-pandemic levels (942.5k units at 11M22/+19.2% YoY). Historically, used car sales growth lags for 1 year after the growth momentum of the new car sales. This optimism is also supported by the company which has built Caroline's O2O services to 22 branches for FY22E, or exceeded the target of 20 branches. Currently, ASLC is traded at 2.37x PBV.
3. ADHI IJ recorded the acquisition of a new contract value of up to 11M22 reaching IDR22.4 trillion (Emiten News). MNCS Comment: Therefore, acquisition of new contract value increased +63% YoY. With the target of achieving a new contract value in FY22E of IDR23 trillion, the realization up to 11M22 was 97.4%. Currently, ADHI is traded at the level of 0.74 PBV.
IHSG Updates
JCI strengthened +0.77% to 6,820.66 on Wednesday (21/12), followed by net foreign sell which reached IDR1.58 trillion. A number of sectors experienced strengthening and boosted the index, led by the energy sector (+3.03%) and followed by the technology sector (+0.37%). On the other hand, the sectors that experienced weakness were the property sector (-0.98%) and followed by the transportation sector (-0.50%). The strengthening of the index was in line with the strengthening of Wall Street. We see that market players tend to be optimistic ahead of the announcement of BI's benchmark interest rate which is estimated by consensus to increase by +25 bps to 5.5%. On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,588/USD. We estimate that the JCI will move in the price range of 6,755-6,847 pending the interest rate decision and the release of Loan Growth YoY Nov, Deposit Facility Rate Dec, and Lending Facility Rate Dec data. Today's recommendation: INKP, SSMS, UNTR, MAPI.
Corporate Actions
Cum Dividend: BSSR (IDR580.59/share)
Cum Rights: BBTN (Rp1,200/share)
RUPS: INCO
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