Global Market Highlights
DJIA fell -0.30% on Wednesday (21/06), followed by the S&P500 (-0.52%) and the Nasdaq (-1.21%). Wall Street continued to weaken, as the reading of testimony by the Fed re-emphasized the potential for an increase in the benchmark interest rate going forward, where consensus expects the FFR to reach 5.6% in FY23E. Today, the market will be looking toward several data releases such as: 1) US Fed Chair Powell Testimony; 2) US Initial Jobless Claims June 17; 3) UK BoE Interest Rate Decision.
Domestic Update
• The government issued PMK No.60/PMK.010/2023 in the form of an increase in the ceiling for landed houses that get an 11% VAT exemption, as well as a maximum selling price limit. MNCS Comment: We see that this will have a positive impact on the building materials industry in line with the potential increase in demand for subsidized housing. Meanwhile, there is no impact on property issuers as the portfolio of residential houses is above ~ IDR1.5 billion.
Company News
1. ACES IJ will distribute cash dividends for the FY22 fiscal year of IDR673.64 billion, or the equivalent of IDR31.06 per share (Kontan). MNCS Comment: Therefore, ACES will offer a dividend yield of 4.5%. DPS increased from the previous IDR20.6 per share, in line with the increase in the payout ratio. Currently, ACES is traded at the level of 18.68x/1.96x PER/PBV.
2. ARCI IJ targets an increase in gold production volume +30% YoY in FY23E (Emiten News). MNCS Comment: Thus, the volume of gold production is estimated to be 144.4 koz, or still lower than the FY20 and FY21 achievements of 206.8 koz/194.4 koz respectively, where the company is currently carrying out a recovery at the Araren Pit, which affected by natural disasters in early FY22. Currently, ARCI is traded at the level of 29.45x/2.25x PER/PBV.
3. TMAS IJ targets a capex allocation of IDR1 trillion for acquisition and expansion plans through the procurement of 10 new vessels, as well as the construction of a new depot and port (Market Bisnis). MNCS Comment: The company's fleet portfolio in FY22 was recorded at 50 units, thus potentially increasing its numbers to 60 units. We view the company's efforts to increase the number of fleets positively, which is expected to boost the company's performance going forward. Currently, TMAS is traded at the level of 15.61x/6.62x PER/PBV.
IHSG Updates
JCI strengthened +0.63% to 6,702.63 on Wednesday (21/06), followed by net foreign sell of IDR62.17 billion. Almost all sectors experienced strengthening and boosted the index rate, led by the cyclical sector (+1.36%) followed by the technology sector (+1.27%). On the other hand, the sector that experienced weakness was the health sector (-1.25%). The index managed to strengthen amid mixed Asian stock exchanges, along with investor optimism ahead of the announcement of the results of Bank Indonesia's RDG decision which is expected to maintain BI7DRR at 5.75%, as well as positive catalysts from the end of the pandemic status. The Rupiah closed higher at IDR14,945/USD. We estimate that the JCI will move in the price range of 6,660-6,728 pending BI’s interest rate decision and the release of Loan Growth YoY May-2023, Lending Facility Rate Jun-2023, and Deposit Facility Rate Jun-2023 data. Today's recommendation: BBCA, GGRM, HRUM, MBMA.
Corporate Actions
IPO: RELF (IDR90/share)
Cum Dividend: EMTK (IDR5/share), SCMA (IDR6.5/share)
Disclaimer On
