Global Market Highlights
DJIA strengthened by +0.80% on Tuesday (07/06), followed by the S&P500 (+0.95%) and the Nasdaq (+0.94%). Wall Street's gains were supported by the weakening yield on the US T-note 10Y to 2.97% and the shrinking trade balance deficit in Apr-22 of USD87.1 billion (vs deficit of USD107.7 billion in Mar-22). Today, the market will be looking toward several data releases such as: 1) US MBA Mortgage Applications; 2) US Wholesale Inventories MoM; 3) UK S&P Global/CIPS Construction PMI.
Domestic Update
• The total incoming bids in the government bond auction on Tuesday (7/6/2022) reached IDR43.54 trillion and the total awarded value was IDR17 trillion or lower than the indicative target set at IDR20-30 trillion. MNCS Comment: The incoming bid value in yesterday's auction was higher than the previous auction in line with the downward trend in government bond yields. The series that investors are most interested in are FR0091, SPN03220907, FR0090.
• Furthermore, the second dose of vaccination rate nationally has reached 80.5% or equivalent to 167.75 million people.
Company News
1. INTP IJ plans to extend the buyback period in 3 months from 7-Jun 22 to 6-Sep 22 , with the remaining allocation of IDR728.02 billion (Kontan). MNCS Comment: It is hoped that the extension of the buyback period will stabilize the stock price movement, where INTP's shares have decreased by -21.07 % YTD. Currently, INTP is trading at 48.14x/1.71x PER/PBV.
2. ENRG IJ managed to find new oil reserves of 115 million barrels in the Malacca Strait PSC block (Investor Daily). MNCS Comment: It is hoped that the addition of these new oil reserves can encourage better ENRG performance in the future, amid the momentum of high world oil commodity prices. ENRG is currently trading at 12.24x/0.95x PER/PBV levels.
3. ASLC IJ targets sales of two-wheeled vehicles and four-wheelers of 90,000-100,000 units through auctions at JBA Indonesia this year, management also projects the company's revenue to grow +182 YoY to IDR500 billion in FY22E (Kontan). MNCS Comment: The company's optimism will be supported by a capex allocation of IDR100-150 billion and three business line segments, namely JBA Indonesia, O2O Caroline and Cartalog, which continue to expand their territory. The recovery of the economy as well as the vehicle incentives that are still given until 9M22 can be a positive catalyst for the company this year. ASLC is currently trading at 437.67x/3.48x PER/PBV.
IHSG Updates
JCI strengthened by +0.63% to 7,141.04 on Tuesday (07/06), followed by net foreign sell which reached IDR625.52 billion. A number of sectors weakened and weighed on the index, led by the technology sector (+1.99%) followed by the industrial sector (+1.64%). On the other hand, the sector that experienced weakness was led by the transportation sector (-2.32%) followed by the health sector (-1.45%). The index gains ahead of the release of Indonesia's foreign exchange reserves, which are estimated to decline but remain solid amid global economic uncertainty. On the other hand, the Rupiah exchange rate closed lower at Rp14,457/USD. We estimate that the JCI will move in the price range of 7,030-7,160 pending the release of Foreign Exchange Reserves MAY data. Today's recommendation: BBCA, BRMS, DOID, ELSA.
Corporate Action
Cum Dividend: MARK (IDR50/share)
RUPS: IMPC, ACES
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