Global Market Highlights
The DJIA weakened by -0.51% on Thursday (12/10), followed by S&P500 (-0.62%) and Nasdaq (-0.63%). Wall Street corrected due to the release of inflation data in Sep-2023, which exceeded expectations. Notably, the inflation rate in Sep-2023 grew by +0.4% MoM/+3.7% YoY (vs the consensus of +0.3% MoM/+3.6% YoY). Today, the market will be looking toward several data releases such as: 1) China Inflation YoY Sep-2023; 2) EA Industrial Production MoM Sep-2023; 3) US Michigan Consumer Sentiment Prel Oct-2023.
Domestic Update
The Commodity Futures Trading Supervisory Agency (Bappebti) will inaugurate the Indonesian CPO exchange, with the Indonesia Commodity and Derivatives Exchange (ICDX) as the sole organizer. MNCS Comment: We expect that the CPO exchange will be a tailwind for both the company and the government. Through the CPO exchange mechanism, it will enhance transparency and accountability in the sector. Furthermore, we anticipate that the CPO exchange can be a catalyst for exporting companies, positively impacting the nation's forex and tax revenue in the future.
Company News
1. MYOR IJ has partnered with Mayora Nigeria Ltd (affiliate) to sell its products in the Nigerian market (Kontan). MNCS Comment: We view the company's efforts to expand its export market positively. In 1H23, export sales increased by +8.1% YoY, contributing 42.6% to the total turnover. Currently, MYORis traded at a level of 23.94x/4.47x PER/PBV.
2. BBHI IJ is optimistic about targeting a +19.9% YoY growth in Third Party Funds (DPK) in FY23E, supported by the launch of their latest service product, Allo Grow (Investor ID). MNCS Comment: We believe the acceleration in DPK growth can boost the company's lending performance, having a positive impact on profitability in the future. We noted a +52.2% YoY increase in DPK in 1H23. Currently, BBHI is traded at a level of 4.24x PBV.
3. PTBA IJ in cooperation with PT Kereta Api Indonesia (KAI), has officially entered into a partnership concerning coal transportation for the Tanjung Enim Baru-Tarahan and Tanjung Enim Baru-Kertapati routes from 2023 to 2027. The target for coal transportation is 35 million tons (Market Bisnis). MNCS Comment: We view PTBA's efforts to enhance an efficient supply chain positively. We believe that cost optimization can act as a cushion for margins, leading to improved future performance. Additionally, we anticipate that this enhancement will drive an increase in the company's sales volume. Currently, PTBA is traded at a level of 5.62x/1.71x PER/PBV.
IHSG Updates
The JCI gained +0.05% to 6,935.15 on Thursday (12/10), followed by a net foreign buy of IDR415.29 billion. Several sectors saw gains and driving the index, led by the infrastructure sector (+3.76%), followed by the cyclical sector (+0.68%). On the flip side, sectors that weakened were led by the basic material sector (-1.40%), followed by the energy sector (-0.90%). The index's rise aligns with the upward trend in other Asian stock markets, ahead of the release of US inflation data in Sep-2023. Investors have positively responded to the dovish tone of The Fed in holding the pace of the upcoming FFR increase. The Rupiah closed higher at IDR15,690/USD. We estimate the IHSG will move within the price range of 6,929-7,000. Today's Recommendations: ACES, ASII, BBRI, NSSS.
Corporate Actions
EGMS: KAEF, WIKA
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