Global Market Highlights
DJIA strengthened by +2.83% on Thursday (14/10), followed by the S&P500 (+2.60%) and the Nasdaq (+2.23%). Wall Street rebounded amid the release of Sep-22 inflation data which declined but was still above the consensus estimate of +8.2% YoY (vs +8.1% YoY on consensus). Investors were watching the release of initial jobless claims data as of 8-Oct'22 which was 228,000 or above the 225,000 consensus. The weak labor market made market participants' expectations of the Fed's monetary tightening tend to be dovish at the Nov-22 FOMC. In addition, the yield on the US T-note 10Y which is below the level of 4% (3.95%) as well as optimism about banking earnings in 3Q22 were the drivers of Wall Street's pace. Today, the market will be looking toward several data releases such as: 1) US Retail Sales MoM Sep; 2) US Michigan Consumer Sentiment Prel Sep; 3) France Inflation Rate YoY Final Sep.
Domestic Update
• Domestic car sales reached 99,986 units in Sep-22, up from 96,956 units in Aug-22. MNCS Comment: Car sales in Indonesia grew 18.9% YoY in September-22 and has continued to increase since June-22 and indicates that the economic recovery is continuing. Currently, car sales have started to return to their normal pre-pandemic range.
• Furthermore, the national Covid-19 daily rate had increased by 1,830 active cases (13/10).
Company News
1. ANTM IJ has officially launched a spin-off in the nickel business segment worth IDR9.8 trillion. The corporate entities that carried out the spin-off were Nusa Karya Arindo (NKA) and Sumberdaya Arindo (SDA) (Market Bisnis). MNCS Comment: With ANTM's ownership in NKA & SDA reaching 99%, the financial statements will still be consolidated. It is hoped that the spin-off on NKA & SDA can increase the optimization of exploration and production operations for nickel ore mining and processing. Meanwhile, nickel ore reserves and resources reached 375 million wmt and 1.44 billion wmt, respectively. ANTM is currently traded at the level of 14.41x/2.05x PER/PBV.
2. TBIG IJ has extended the buyback period, which previously ended on 24-Oct'22 to 12-Jan'23 (Investor ID). MNCS Comment: On Jul-22, TBIG planned to buy back a maximum of 679.71 million shares, with a nominal share of IDR20, equivalent to 3% of the issued and fully paid capital. It is hoped that the buyback will stabilize stock price volatility, as the share price fell by -14.24% YTD. Currently, TBIG is traded at the level of 34.69x4.54x PER/PBV.
3. ASII IJ reported the sales of the automotive segment in 9M22 to reach 413,464 units, an increase of 20% YoY. Meanwhile, sales in Sep-22 grew by +12% MoM (Investor ID). MNCS Comment: With sales of the domestic automotive segment up to 9M22 of 758,216 units, ASII's automotive market share reached 54.53% up to 9M22. We see that this positive achievement was also supported by the PPnBM incentives which ended on Sep-22. ASII is currently traded at the level of 7.07x1.40x PER/PBV.
IHSG Updates
JCI weakened by -0.41% to 6,880.62 on Thursday (13/10), followed by net foreign sell which reached IDR310.45 billion. The majority of sectors experienced weakness and weighed on the index's pace, led by the infrastructure sector (-0.95%) followed by the technology sector (-0.87%). On the other hand, the sectors that experienced strengthening were the non-cyclical sector (+0.53%) followed by the energy sector (+0.23%). The index's decline was in line with Asian markets and Wall Street. Investors tend to wait and see ahead of the release of inflation data in the US Sep-22, where the consensus estimates for +8.1% YoY (vs realized +8.3% YoY in Aug-22). On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,361/USD. We estimate that the JCI will move in the price range of 6,800-7,000. Today's recommendation: BIPI, PTBA, SSMS, TOWR.
Corporate Actions
RUPS: KAEF
Public Expose: ARTO, BBRI
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