Global Market Highlights
The DJIA strengthened by +0.87% on Friday (06/10), followed by the S&P500 (+1.18%) and Nasdaq (+1.60%). Wall Street made a rebound, as the release of the average hourly earnings data for Sep-2023 showed a growth that stayed below the consensus level, at +0.2% MoM (vs +0.3% consensus). This fueled investor speculation that The Fed will maintain the FFR in the upcoming FOMC meeting. Today, the market will be looking toward several data releases such as: 1) Germany Industrial Production MoM Aug-2023; 2) France 6-Month BTF Auction; 3) France 12-Month BTF Auction.
Domestic Update
Bank Indonesia (BI) reported that Indonesia's foreign exchange reserves in Sep-2023 amounted to USD134.9 billion. MNCS Comment: Indonesia's foreign exchange reserves in Sep-2023 experienced a decrease of USD2.2 billion (vs USD137.1 billion di Aug-2023). This decline was influenced by the government's foreign debt payments and the need to stabilize the rupiah exchange rate. Moving forward, we anticipate a continued decrease, in line with rising expectations of BI intervention to mitigate rupiah depreciation amidst the increasing dollar index.
Company News
1. ASGR IJ will distribute an interim cash dividend for the FY23 fiscal year of IDR17.53 billion, equivalent to IDR13 per share (IQ Plus). MNCS Comment: With this, we estimate that ASGR will offer a dividend yield of 1.4%. Meanwhile, with a net profit of IDR66.9 billion in 1H23, the payout ratio reaches 26.2%. ASGR is currently traded at a level of 9.67x/0.75x PER/PBV.
2. PTBA IJ allocated exploration funds in 3Q23 amounting to IDR17.06 billion. Exploration activities include geological mapping, core and non-core drilling, geophysical logging, coal and rock sample testing, and TOC & BOC (Emiten News). MNCS Comment: We view the exploration efforts positively, which can strengthen the company's future operations and maintain the company's reserves and resources. PTBA is currently traded at a level of 5.52x/1.68x PER/PBV.
3. IPCC IJ reported an expansion in operational exploration at the Roro Terminal, Balikpapan (Investor ID). MNCS Comment: As a result, the company's operational coverage area has increased to ~5. With the addition of operational areas, we expect a boost in the company's performance, especially as IPCC stands to benefit from the mega IKN project development. IPCC is currently traded at a level of 7.95x/1.01x PER/PBV.
IHSG Updates
The JCI rose by +0.20% to 6,888.52 on Friday (06/10), accompanied by a net foreign sell of IDR26.88 billion. The majority of sectors saw gains, driving the index's growth, led by the technology sector (+1.68%) followed by the basic materials sector (+1.66%). On the other hand, the sectors experiencing declines were led by the industrial sector (-0.57%), followed by the infrastructure sector (-0.47%). The index's rise was in tandem with most Asian exchanges. We see that this surge is driven by fading US labor market sentiment and investor optimism ahead of the Consumer Confidence data release. The Rupiah closed higher at IDR15,610/USD. We estimate the IHSG will move within the price range of 6,882-6,920 pending the release of Consumer Confidence Sep-2023 data. Today's Recommendations: BBCA, BRPT, ESSA, KLBF.
Corporate Actions
IPO: BREN (IDR780/share), PTPS (IDR198/share)
RUPSLB: BNGA
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