Global Market Highlights
The DJIA was down -1.95% on Wednesday (11/9), followed by the S&P500 (-2.08%) and the Nasdaq (-2.48%). Wall Street corrected as the sell-off was triggered by investors' behavior which tends to wait and see ahead of the release of inflation data in Oct-2022 (consensus estimate +8% YoY), as well as slowing growth in the release of Wholesale Inventories data in Sep-22 by +0.6 % MoM (vs +0.8% MoM on consensus). Today, the market will be looking toward several data releases such as: 1) US Inflation Rate YoY Oct; 2) US Core Inflation Rate YoY Oct; 3) US CPI Oct.
Domestic Update
• Indonesian retail sales grew +4.6% YoY in Sep-2022 (vs +4.9% YoY Aug-22). Retail sales is expected to increase +3.1% MoM/+4.51% YoY in Oct-2022. MNCS Comment: Retail sales performance in Sep-2022 was supported by strengthening consumption of food, beverages and tobacco as well as other household equipment groups amid slowing growth in the fuel and spare parts category. The drivers for retail sales for October-2022 will be from food, beverages and tobacco as well as information and communication equipment.
• Furthermore, the national Covid-19 daily rate had increased by 6,186 active cases (09/11).
Company News
1. SMDR IJ expanded its fleet by 3 units in 4Q22 (Market Bisnis). MNCS Comment: With the number of fleets currently operating reaching ~35 units, the company's total fleet potentially increases to 38 units. It is hoped that this addition can encourage the company's income going forward. SMDR is currently traded at the level of 2.31x/1.29x PER/PBV.
2. STAA IJ has begun to realize the expansion of downstream palm oil products, supported through the construction of downstream mills, as well as other practices (Market Bisnis). MNCS Comment: With business development down to the downstream level, it is expected to increase the company's margin going forward in line with the added value offered from the product. In addition, the company’s downstream is supported with a total land area of 48,100 hectares and an average plant age of ~12 years. Currently, STAA is traded at the level of 9.66x/3.12x PER/PBV.
3. ANTM IJ reported that ferronickel production up to 9M22 reached 18,088 TNi, while ferronickel sales volume reached 17,269 TNi (IQ Plus). MNCS Comment: Thus, ferronickel production and sales volume fell by -5.28% YoY/-8.53% YoY, respectively. The decline was in line with the impact of global economic volatility and geopolitical tensions that affected demand for metal products and fluctuations in selling prices. ANTM is currently traded at the level of 15.75x/2.24x PER/PBV.
IHSG Updates
JCI strengthened +0.28% to 7,070.08 on Wednesday (09/11), followed by net foreign buy which reached IDR350.36 billion. The majority of sectors strengthened and pushed the index up, led by the technology sector (+1.70%) followed by the property sector (+0.79%). On the other hand, the sectors that led the decline were the energy sector (-1.16%) followed by the transportation & logistics sector (-0.85%). The index strengthened amid the release of China's inflation data in Oct-2022 which declined to +2.1% YoY (vs 2.8% YoY in Sep-22). We see that investors tend to be optimistic in responding to the release of China's inflation data in Oct-2022 which slowed to +2.1% YoY, or below the consensus estimate and realization in Sep-22 with +2.8% YoY/+2.4% YoY, respectively. On the other hand, the Rupiah exchange rate closed higher at IDR15,661/USD. We estimate that the JCI will move in the price range of 7,011-7,090. Today's recommendation: BBTN, INTP, MTDL, TLKM.
Corporate Actions
IPO: ZATA (IDR100/share), KETR (IDR300/share)
Cum Dividend: ITMG (IDR4,128/share)
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