Global Market Highlights
DJIA rallied +0.27% on Wednesday (07/06), while the S&P500 (-0.38%) and Nasdaq (-1.29%). Wall Street closed mixed, as UST yields increased and a wait and see attitude ahead of the release of the latest jobless claims data. Today, the market will be looking toward several data releases such as: 1) US Initial Jobless Claims June 3; 2) US Wholesale Inventories MoM Apr; 3) Japan Eco Watchers Survey Current May.
Domestic Update
• Prices for aluminum, nickel and copper commodities on the LME compact contracted in May-2023 and on a YTD basis. MNCS Comments: The decline in prices is reflected in the weak recovery in China's industrial activity (PMI <50 for the last 2 months), the crisis in China's real estate sector and oversupply of metals such as nickel, hence the performance of metal mining issuers will depend heavily on production optimization and production cost efficiency.
Company News
1. BALI IJ will distribute cash dividends for the FY22 fiscal year of IDR127.25 billion, or the equivalent of IDR32.34 per share. The dividend cum date for the regular and negotiated markets is June 12, 2023 (Emiten News). MNCS Comment: Therefore, we estimate that BALI will offer a dividend yield of 4.3%. DPS increased compared to the previous year at IDR31.15 per share, as net profit increased to +12.5% YoY. Currently, BALI is traded at the level of 16.29x/1.20x PER/PBV.
2. ELSA IJ will distribute cash dividends in the FY22 fiscal year of IDR189 billion (50% payout ratio) or equivalent to IDR25.90 per share (Emiten News). MNCS Comment: Therefore, we estimate that ELSA will offer a dividend yield of up to 7.7%. The amount of DPS increased compared to FY20/FY21 of IDR10.24/IDR7.45 per share, in line with the company's improved performance. Currently, ELSA is traded at the level of 5.37x/0.58x PER/PBV.
3. MAPA IJ will present the ALDO brand in the Southeast Asia region, through the management of a partnership that includes 55 outlets, with as many as 21 outlets domestically and 34 outlets in the region (Kontan). MNCS Comment: We view the company's expansion positively which can strengthen its footprint as a lifestyle retailer. In addition, the omnichannel ecosystem owned and customer loyalty (MAPCLUB) are expected to support this acceleration. Currently, MAPA is traded at the level of 17.69x/4.12x PER/PBV.
IHSG Updates
JCI was relatively flat +0.01% to 6,619.76 on Wednesday (07/06), followed by IDR454.56 billion net foreign sell. A number of sectors experienced strengthening and boosted the index rate, led by the cyclical sector (+2.30%) followed by the transportation sector (+1.36%). On the other hand, the sector that led to the decline was the energy sector (-0.79%) followed by the technology sector (-0.25%). The index was relatively flat amidst the weakening of the majority of Asian stock exchanges, where investors were paying attention to the weak performance of China's trade balance in May-2023, raising fears that the scarring effect would increase again. The rupiah closed lower at IDR14,878/USD. We estimate that the JCI will move in the price range of 6,598-6,640. Today's recommendation: ANTM, BBTN, ERAA, JPFA.
Corporate Actions
Cum Dividend: RAJA (IDR15.87/share), WIIM (IDR72.9/share), ZYRX (IDR8.85/share)
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