Global Market Highlights
The DJIA strengthened by +0.13% on Monday (25/09), followed by the S&P500 (+0.40%) and Nasdaq (+0.45%). Wall Street successfully rebounded as investors' confidence in the US economy avoiding a recession grew and there's a likelihood of a soft landing amid signals of interest rates being higher for longer. Today, the market will be looking toward several data releases such as: 1) US CB Consumer Confidence Sep-2023; 2) US House Price Index MoM Jul-2023; 3) US New Home Sales MoM Aug-2023.
Domestic Update
• Bank Indonesia (BI) reported that the M2 money supply in Aug-2023 grew positively by +5.9% YoY, driven by quasi-money growth of +8.4% YoY. MNCS Comment: Although the M2 money supply in Aug-2023 slowed compared to Jul-2023 at +6.4% YoY, we noted that credit disbursement grew expansively by +8.9% YoY (vs +8.4% YoY in Jul-2023).
Company News
1. UNTR IJ reported that the sales volume of Komatsu heavy equipment up to 8M23 reached 3,951 units (Market Bisnis). MNCS Comment: The heavy equipment sales decreased slightly by -1.0% YoY (vs 3,989 units in 8M22). Meanwhile, with a sales target of 6,000 units for FY23EE, the achievement up to 8M23 has reached 65.9%. Currently, UNTR is traded at a level of 4.70x/1.47x PER/PBV.
2. WTON IJ recorded new contract gains up to 8M23 amounting to IDR4.67 trillion (Emiten News). MNCS Comment: WTON's achievement of new contract values in 8M23 increased by +11.5% YoY. With a target of IDR8.6 trillion for new contract gains in FY23E, the achievement up to 8M23 is 54.3%. Currently, WTON is traded at a level of 0.37x PBV.
3. INDY IJ established PT Kalista Nayara Dayautama, which operates in the electric vehicle charging sector (Kontan). MNCS Comment: We view INDY's expansion efforts positively to complement the EV ecosystem. The establishment of PT Kalista Nayara Dayautama will support the operations of PT Ilectra Motor Group and PT Electra Mobilitas Indonesia as EV producers with the brand ALVA. Currently, INDY is traded at a level of 4.48x/0.67x PER/PBV.
IHSG Updates
The JCI weakened by -0.26% to 6,998.38 on Monday (25/09), accompanied by a net foreign sell of IDR 1.18 trillion. Several sectors experienced a decline, weighing on the index's momentum, led by the infrastructure sector (-1.13%) followed by the technology sector (-0.88%). On the other hand, sectors that strengthened were led by the non-cyclical sector (+0.49%), followed by the energy sector (+0.46%). The index weakened despite the majority of Asian markets strengthening, where investors adopted a wait and see approach ahead of the release of the latest macroeconomic data at the beginning of the month. The Rupiah closed lower at IDR15,400/USD. We estimate the IHSG will move within the price range of 6,983-7,024. Today's Recommendations: ENRG, INKP, KEEN, SULI.
Corporate Actions
AGMS: HEXA
Disclaimer On
