Global Market Highlights
DJIA fell -1.03% on Tuesday (6/12), followed by S&P500 (-1.44%) and Nasdaq (-2.00%). Wall Street continued its correction as fears of an impending recession grew. In addition, negative sentiment from semiconductor industry data caused a sell-off and weighed on Wall Street's performance. Today, the market will be looking toward several data releases such as: 1) US MBA Mortgage Applications; 2) France Balance of Trade Oct; 3) Japan Leading Economic Index Prel Oct.
Domestic Update
• Bank Indonesia projects digital banking transactions in 2023 to be IDR67,600 trillion, while electronic money transactions will be IDR508 trillion. MNCS Comment: We see that this growth is supported by the increasingly rapid development of digital payments and internet penetration that continues to grow.
• Furthermore, the national Covid-19 daily rate had increased by 3,744 active cases (6/12).
Company News
1. UNTR IJ acquired 2 nickel companies, namely PT Stargate Pacific Resources and PT Stargate Mineral Asia. The transaction value reached USD271.82 million or equivalent to IDR4.27 trillion (Kontan). MNCS Comment: We view positively the company's diversification efforts by acquiring companies engaged in Nickel commodities. We see this move driven by: 1) ample cash (IDR43.4 trillion in 9M22) along with windfall; 2) the momentum of the EV industry going forward. Currently, UNTR is traded at the level of 4.95x/1.32x PER/PBV.
2. APLN IJ reported that marketing sales up to 9M22 reached IDR1.58 trillion (Market Bisnis). MNCS Comment: Thus, the marketing sales results grew +17.9% YoY (vs IDR1.34 trillion in 9M21). With the target of obtaining marketing sales in FY22E reaching IDR2.5 trillion, the realization up to 9M22 reached 63.2%. Currently, APLN is traded at the level of 1.16x/0.36x PER/PBV.
3. BFIN IJ will distribute an interim dividend for the FY22E financial year of IDR421.10 billion, or the equivalent of IDR28 per share, cum dividend date for the regular market and negotiations on 14 December 2022 (Emiten News). MNCS Comment: Therefore, BFIN will offer a dividend yield of 2.6%. With net profit up to 9M22 reaching IDR1.3 trillion, the payout ratio is 32.2%. Currently, BFIN is traded at the level of 2.02x PBV.
IHSG Updates
JCI weakened -1.36% to 6,987.33 on Tuesday (6/12), followed by net foreign sell which reached IDR1.34 trillion. The majority of sectors experienced weakening and weighed on the index, led by the infrastructure sector (-2.83%) and followed by the raw materials sector (-2.61%). On the other hand, the only sector that experienced gain was the energy sector (+0.54%). The weakening of the index was in line with the weakening of Wall Street and some Asian bourses. We see investors tend to wait and see ahead of the release of US balance of trade data in Oct-2022 which is estimated by consensus to be a deficit of -USD80 trillion (vs a deficit of -USD73.3 trillion in Sep-2022 realization), or the lowest in the last 3 months. On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,618/USD. We estimate that the JCI will move in the price range of 6,828-6,940 pending the release of Foreign Exchange Reserves Nov data. Today's recommendation: ITMG, PWON, RALS, PGAS.
Corporate Actions
Cum Dividend: SMMT (IDR15/share)
RUPS: MAPB, BJTM
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