Global Market Highlights
DJIA weakened -0.34% on Monday (09/01), followed by S&P500 (-0.08%) while Nasdaq (+0.63%). Wall Street closed mixed, where investors paid attention to the hawkish comments of The Fed which plans to raise the FFR +25 bps at the FOMC Feb-2023. Today, the market will be looking toward several data releases such as: 1) US Fed Chair Powell Speech; 2) US Wholesale Inventories MoM Nov; 3) France Industrial Production MoM Nov.
Domestic Update
• Indonesia's Consumer Confidence Index (CCI) in Dec-2022 rose to a level of 119.9 points, higher than the Nov-2022 achievement of 119.1 points. MNCS Comment: The increase in CCI was supported by the Economic Conditions Index which increased to a level of 112.4 points (vs 110.3 points in Nov-2022), amidst the Consumer Expectations Index which remained solid at 127.3 points.
Company News
1. WSKT IJ targets the acquisition of new contracts in FY23E of IDR25 trillion (Bisnis Market). MNCS Comment: This target is below the FY22 target, where the company targeted to obtain a new contract value of IDR30 trillion. Meanwhile, up to 11M22, the value of new contracts was recorded at IDR13.5 trillion, or a realization of 45.7%. Currently, WSKT is traded at the level of 1.07x PBV.
2. GEMS IJ targets coal production to grow +5% YoY in FY23E (Kontan). MNCS Comment: With a production target in FY22 of 40 million tons, the coal production target in FY23E will reach 42 million tons, while realization in FY22 is estimated to have reached 97.5%. We see that the increase in the production target will be supported by, among other things, the more conducive la nina climate in 1H23. Currently, GEMS is traded at the level of 4.16x/5.91x PER/PBV.
3. AMRT IJ projects the growth of the retail industry ahead of the election in FY23F to reach 15% YoY (Market Bisnis). MNCS Comment: The retail industry in political years always grew positively, where in FY14/19 it was 5.2/4.8% YoY, respectively. Along with this growth, we believe AMRT's performance can improve, supported by store expansion +6.4% YTD in 9M22. Currently, AMRT is traded at the level of 48.72x/11.66x PER/PBV.
IHSG Updates
JCI strengthened +0.06% to 6,688.27 on Monday (09/01), followed by net foreign sell which reached IDR149.37 billion. A number of sectors experienced strengthening and boosted the index rate, led by the health sector (+1.91%) and followed by the raw materials sector (+1.06%). On the other hand, the sectors that experienced weakness were the energy sector (-2.18%) and the cyclical sector (-0.94%). The strengthening of the index was in line with the strengthening of Wall Street and Asian Exchanges. We see investors responding positively to the RII consumer confidence index in Dec-2022 which rose to 119.9 points (vs 119.1 points in Nov-2022). On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,568/USD. We estimate that the JCI will move in the price range of 6,663-6,710. Today's recommendation: INCO, KLBF, MDKA, TLKM.
Corporate Actions
IPO: WINE (IDR129/share)
RUPS: TIFA
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