Global Market Highlights
DJIA fell -0.68% on Wednesday (14/06), while the S&P500 (+0.08%) and Nasdaq (+0.39%). Wall Street closed mixed amid The Fed's decision to hold its benchmark interest rate, where the market is again monitoring hawkish signals in the form of a plan to increase the benchmark interest rate by +50 bps until the end of the year. Today, the market will be looking toward several data releases such as: 1) US Retail Sales MoM May; 2) US Initial Jobless Claims Jun 10; 3) US Philadelphia Fed Manufacturing Index Jun.
Domestic Update
• Domestic business actors are indicated to continue expanding their business activities amid national economic recovery sentiment, reflected in the growth in customer deposits of >IDR5 billion which sloped to +10.4% YoY in Apr-2023 (vs +13.5% YoY in Mar-2023) or decreased -3.2% YTD, according to LPS. MNCS Comment: Business expansion was also seen from the rise in switching towards current accounts by +14.5% YoY and a slowdown in deposit growth +7.78% YoY in Apr-2023 (vs +12% YoY and +8.2% YoY in Mar-2023) for customers deposits of >IDR 5 billion.
Company News
1. SGRO IJ will distribute a final cash dividend for the FY22 fiscal year of IDR163.67 billion, or the equivalent of IDR198 per share. Cum dividend date on the regular market and negotiation market on June 19, 2023 (IQ Plus). MNCS Comment: Thus, we estimate SGRO will offer a dividend yield of 9.2%, or higher than the 5Y average yield of 4.3%. Currently, SGRO is traded at the level of 12.82x/0.75x PER/PBV.
2. BRPT IJ will distribute cash dividends for the FY22 financial year worth USD10 million from the FY22 net profit (99% DPR) and retained earnings balance (Market Bisnis). MNCS Comment: Therefore, DPS will be IDR1.59 per share, or BRPT will offer a dividend yield of 0.2%. Currently, BRPT is traded at the level of 2.81x PBV.
3. LINK IJ collaborates with Hypernet Technologies to present the collaboration product "LYFT", as a technology solution that facilitates flexible network management (Kontan). MNCS Comment: We see that this synergy can support the digital transformation of corporate customers, thus adding value for LINK and contributing to the company's performance going forward. Currently, LINK is traded at the level of 0.96x PBV.
IHSG Updates
JCI weakened -0.29% to 6,699.72 on Wednesday (14/06), followed by net foreign sell of IDR702.83 billion. A number of sectors experienced weakening and weighed on the index, led by the health sector (-1.23%) followed by the technology sector (-1.05%). On the other hand, the sector leading the strengthening was the raw materials sector (+1.28%) followed by the industrial sector (+0.98%). The index weakened amid Asian bourses which were closed mixed, where investors were still waiting and seeing ahead of the announcement of the Fed's FOMC results. The Rupiah closed lower at IDR14,900/USD. We estimate that the JCI will move in the price range of 6,645-6,722 pending the release of Balance of Trade May-2023 data. Today's recommendation: BIRD, BNBR, JSMR, MPMX.
Corporate Actions
Cum Dividend: ANJT (IDR27.8/share), HATM (IDR4.07/share), JKON (IDR3/share)
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