Global Market Highlights
DJIA fell -0.65% on Friday (23/06), followed by the S&P500 (-0.77%) and the Nasdaq (-1.01%). Wall Street was corrected as The Fed's hawkish tone was still weighing on the market. Moreover, investors were also waiting and seeing ahead of the release of macroeconomic data next week. Today, the market will be looking toward several data releases such as: 1) US Dallas Fed Manufacturing Index Jun; 2) Germany Ifo Business Climate Jun; 3) Japan Leading Economic Index Final Apr.
Domestic Update
• Bank Indonesia noted through transaction data June 19-22, 2023, non-residents on the domestic financial market recorded a net buy of IDR2.22 trillion, with a net buy of IDR3.26 trillion on the SBN market and a net sell of IDR1.05 trillion on the stock market. MNCS Comment: We see a net sell-off in the stock market in line with exposure from The Fed which plans to increase the FFR +50 bps again, thereby triggering an outflow of riskier assets.
Company News
1. INDF IJ will distribute cash dividends for the FY22 fiscal year of IDR2.25 trillion, or the equivalent of IDR257 per share (Kontan). MNCS Comment: Thus, INDF will offer a dividend yield of 3.5%. The amount of dividends decreased compared to the previous year in line with a decrease in net profit performance (-17.0% YoY), which was caused by fx losses. Currently, INDF is traded at the level of 4.16x/1.12x PER/PBV.
2. ICBP IJ will distribute cash dividends for the FY22 financial year of IDR2.19 trillion, or the equivalent of IDR188 per share (Emiten News). MNCS Comment: That way, ICBP will offer a dividend yield of 1.7%. DPS decreased compared to the previous year (IDR215 per share). Meanwhile, we estimate an average 5Y dividend yield of 2.24%. Currently, ICBP is traded at the level of 8.24x/3.25x PER/PBV.
3. MIDI IJ will conduct a rights issue by issuing 4.6 billion new shares (nominal IDR10 per share) with an exercise price of IDR270 per share. Estimated funds through RI action amounting to IDR1.24 trillion (Market Bisnis). MNCS Comment: 70% of RI's proceeds will be used for working capital while the remaining 30% is for capital expenditure. We view positively that this effort can expand the company's outlets and has the potential to generate revenue in the future. Meanwhile, the maximum dilution potential is 13.8%. Currently, MIDI is traded at the level of 26.61x/5.63x PER/PBV.
IHSG Updates
JCI weakened -0.19% to 6,639.73 on Friday (23/06), followed by net foreign sell of IDR693.61 billion. The majority of sectors experienced weakness and weighed on the index, led by the technology sector (-1.12%) followed by the financial sector (-0.80%). On the other hand, the sector leading the strengthening was the raw materials sector (+0.72%) followed by the non-cyclical sector (+0.33%). The index weakened along with Asian bourses, where investors were watching the latest Asian macroeconomic data as well as concerns about the outlook for economic growth. The Rupiah closed lower at IDR14,994/USD. We estimate that the JCI will move in the price range of 6,660-6,675 pending the release of M2 Money Supply May-2023 data. Today's recommendation: ANTM, MPMX, TBIG, TOBA.
Corporate Actions
Cum Dividend: BAYU (IDR50/share), KEEN (IDR6.5/share), TCPI (IDR7/share)
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