Global Market Highlights
DJIA strengthened +0.62% on Monday (10/07), followed by the S&P500 (+0.24%) and the Nasdaq (+0.18%). Wall Street managed to rebound, following the Jun-2023 inflation expectations data which dropped to 3.8%, as well as a decrease in the UST yield to a level of 4.0%. Today, the market will be looking toward several data releases such as: 1) Germany ZEW Economic Sentiment Index Jul-2023; 2) Germany Inflation Rate YoY Final Jun-2023; 3) UK Unemployment Rate May-2023.
Domestic Update
• In Jun-2023, the Consumer Expectations Index for economic conditions over the next 6 months dropped slightly to 137.5 (vs 137.8 in May-2023). MNCS Comment: Despite falling consumer expectations, the average proportion of consumer income for consumption increased to 75.7%, (vs 75.4% previously). We view that the IEK will remain in the optimistic zone (>100), especially with the forthcoming election which could bolster and sustain the consumer purchasing power.
Company News
1. INCO IJ reports exploration costs in Jun-2023 of USD895.8K (Emiten News). MNCS Comment: In 1H23, cumulative exploration costs reached a significant 84.2% YoY increase to USD5.6 million (vs USD3.1 million in 1H22). This investment is anticipated to optimize the company's future resources and reserves. Currently, INCO is traded at the level of 10.61x/1.70x PER/PBV.
2. AUTO IJ is set to develop both retail and B2B charging stations. The company already operates seven stations within the Jabodetabek area (Emiten News). MNCS Comment: We view the company's expansion, aimed at capitalizing on the upward trend of EV development, as a positive move. This complements their existing footprint as an OEM and REM manufacturer. Currently, AUTO is traded at the level of 7.15x/1.00x PER/PBV.
3. MTLA IJ targets to reach marketing sales in FY23E of IDR1.8 trillion (Kontan). MNCS Comment: The FY23E marketing sales target for marketing remains consistent with FY22 at IDR1.8 trillion, achieving IDR1.73 trillion (96.1% of the target). This unchanged target reflects consumer hesitation in a political year. As of 6M23, the marketing sales has reached IDR756 billion, reaching 42% of FY23E target. Currently, MTLA is traded at the level of 10.84x/0.66x PER/PBV.
IHSG Updates
JCI strengthened +0.22% to 6,731.04 on Monday (10/07), followed by net foreign buy reaching IDR168.36 billion. The majority of sectors experienced strengthening and boosted the index, led by the property sector (+1.92%) followed by the energy sector (+1.10%). On the other hand, sectors that experienced weakness were led by the technology sector (-0.76%) followed by the cyclical sector (-0.52%). The index rebounded despite mixed closing results from Asian stock markets, with investors reacting positively to Consumer Confidence Index Jun-2023 data, which was at optimistic level of 127.1 (vs 128.3 in May-2023). The Rupiah closed lower at IDR15,195/USD. We estimate that the JCI will move in the price range of 6,696-6,740. Today's recommendation: ADRO, ITMG, RALS, UNVR.
Corporate Actions
RUPS: BOSS, SBAT, YELO
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