Global Market Highlights
DJIA was down -1.45% on Monday (28/11), followed by the S&P500 (-1.54%) and the Nasdaq (-1.58%). Wall Street was corrected as the yield on US T-notes increased to 3.7%, triggered by the Fed's hawkish comments that it will keep interest rates high in 2023-2024, considering the labor market and solid demand. Today, the market will be looking toward several data releases such as: 1) US CB Consumer Confidence Nov; 2) US House Price Index Mom Sep; 3) Germany Inflation Rate YoY Prel Nov.
Domestic Update
• Bank Indonesia (BI) reports that the number of BI-FAST participants has increased by 29 banks. Since its launch on 21 December 2021, the total number of BI-FAST participants is now 106 participants representing 87% of the share of the national retail payment system. MNCS Comment: The level of bank participation in BI-FAST is also supported by a positive response from the public due to lower transfer fees and increasing penetration of digital payments.
• Furthermore, the national Covid-19 daily rate had increased by 4,151 active cases (27/11).
Company News
1. PTBA IJ is in the process of increasing its coal transportation and logistics capacity, through the construction of facilities in Keramasan and Krajen with each capacity of 20 million tons per year (Market Bisnis). MNCS Comment: The existing distribution capacity in Palembang and Lampung is 32 million tons per year. It is hoped that the realization of the construction of new logistics facilities can increase lead-time in line with the estimated total logistics capacity of ~72 million tons per year. Currently, PTBA is traded at the level of 3.18x/1.62x PER/PBV.
2. TOBA IJ posted an increase in net profit in 9M22 by +60.24% YoY to USD54.76 million (vs USD34.17 million in 9M21) (IQ Plus). MNCS Comment: The increase in net profit was supported by revenue growth of +63.57% YoY to USD469.13 million (vs USD286.80 million) in line with the increase in ASP +83.13% YoY, amidst declining sales volume in coal mining of -9.52% YoY. Currently, TOBA is traded at the level of 4.74x/1.02x PER/PBV.
3. WOOD IJ posted a net profit decline in 9M22 of -14.84% YoY to IDR300.67 billion (vs IDR353.07 billion in 9M21) (IQ Plus). MNCS Comment: The decrease in net profit amidst the increase in revenue +10.62% YoY was caused by the increase in selling expenses +76.05% YoY which reduced operating profit (-18.25% YoY). WOOD is currently traded at the level of 6.10x/0.63x PER/PBV.
IHSG Updates
JCI weakened -0.51% to 7,017.36 on Monday (28/11), followed by net foreign buy which reached IDR428.12 billion. The majority of sectors were weak and weighed on the index's pace, led by the technology sector (-3.83%) and followed by the infrastructure sector (-1.29%). On the other hand, the sectors that experienced strengthening were the health sector (+0.88%) followed by the non-cyclical sector (+0.60%). The weakening of the index was in line with the weakening of Asian markets. The decline in the index was triggered by increasing concerns of market participants about the potential for a lockdown in China, after China's daily positive cases on Sunday (27/11) penetrated 38,808 cases. On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,723/USD. We estimate that the JCI will move in the price range of 6,988-7,060. Today's recommendation: BIPI, ESSA, ITMG, MPMX.
Corporate Actions
Cum Dividend: UNVR (IDR69/share), TOTO (IDR10/share), PGLI (IDR10/share)
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