Global Market Highlights
The DJIA strengthened by +0.62% on Tuesday (24/10), followed by S&P500 (+0.73%) and Nasdaq (+0.93%). Wall Street rebounded as investors focused on positive earnings releases. Furthermore, PMI manufacturing flash data in Oct-2023 rose to a level of 50, indicating a rebound from contraction levels. Today, the market will be looking toward several data releases such as: 1) AUS Inflation Rate YoY Q3; 2) US Building Permits Final Sep-23; 3) US New Home Sales Sep-23.
Domestic Update
Bank Indonesia (BI) reported that the growth of broad money (M2) in Sep-2023 increased by +6.0% YoY. MNCS Comment: The expansive growth of broad money (M2) compared to the previous period at +5.9% YoY, is primarily supported by the growth of quasi-money by +8.4% YoY. Meanwhile, credit disbursement slowed down to +8.7% YoY in Sep-2023 (vs +8.9% YoY in Aug-2023). Time deposits were relatively stable at +6.4% YoY.
Company News
1. BSDE IJ recorded marketing sales of IDR6.75 trillion until 9M23 (Market Bisnis). MNCS Comment: We note that marketing sales relatively flat at +0.4% YoY (vs IDR6.72 trillion in 9M22). Meanwhile, with a marketing sales target of IDR8.8 trillion in FY23E, the realization until 9M23 reached 76.7%. Currently, BSDE is traded at a level of 8.90x/0.60x PER/PBV.
2. TAPG IJ reported fresh fruit bunch (FFB) production of 2.25 million tons until 9M23 (Kontan). MNCS Comment: We note that FFB production decreased by -17.1% YoY (vs 2.7 million tons in 9M22). We anticipate further declines due to exposure to El-Nino. Meanwhile, with an average tree age of 12.7 years, we expect this to act as a buffer. Currently, TAPG is traded at a level of 11.30x/1.09x PER/PBV.
3. NSSS IJ reported a net loss of IDR34.0 billion in 9M23 (vs a net profit of IDR64.6 billion in 9M22) (Market Bisnis). MNCS Comment: The net loss occurred despite a +3.2% YoY increase in revenue to IDR892.0 billion in 9M23 (vs IDR864.3 billion in 9M22), due to a +38.0% YoY increase in COGS. This resulted in a -49.2% YoY decline in gross profit and a decrease in GPM to 19.7% (vs 40.0% in 9M22). Additionally, financial expenses of IDR126.6 billion also impacted the company's profitability. Currently, NSSS is traded at a level of 4.31x PBV.
IHSG Updates
The JCI strengthened by +0.96% to 6,806.76 on Tuesday (24/10), followed by a net foreign sell of IDR344.94 billion. Almost all sectors experienced gains and drove the index, led by the logistics and transportation (+2.67%), followed by the property sector (+1.87%). On the other hand, the technology sector showed loss (-0.54%). The index strengthened alongside most other Asian markets, as investors responded positively to the pullback in the UST 10Y yield and observed the growth in the money supply (M2) in Sep-2023. The Rupiah closed higher at IDR15,850/USD. We estimate the IHSG will move within the price range of 6,792-6,850. Today's Recommendations: AKRA, MDKA, PGEO, HRUM.
Corporate Actions
EGMS: EDGE, ETWA, HAIS
Disclaimer On
