22 Juni 2020
MNCS Morning Navigator 22 June 2020
Global Market Highlight
DJIA movement was flat (-0.80%) on Friday (19/06) followed by S&P 500 (-0.56%) and Nasdaq (+0.03%). These flat movements were due to a battle between stimulus from the Fed and increased household consumption on one hand, despite an increase in corona cases in various parts of the world. As there are an increasing number of patients in the south and southwest of the United States which raises fears of another shutdown. Therefore, it seems that the estimated economic recovery in 2H20 is still uncertain as the world is trying to avoid the second wave of corona virus outbreak. Moreover, the market will look forward to several data releases today, such as: 1) HK Current Account; 2) Eurozone Consumer Confidence; 3) US Existing Home Sales.
Domestic Updates
The Ministry of Public Works and Public Housing (PUPR) targets to absorb 28,987 workers for the road and bridge labor intensive programs. From this target has reached 40.32% with a budget of IDR593 billion and absorbed 18,717 workers.
Company News
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INCO IJ shares will be acquired by MIND ID amounting to IDR5.52 trillion. Through 20% ownership of INCO and a 65% stake in ANTM will give the company access to one of the world's largest and best nickel reserves and resources. (Market Bisnis) MNCS Comment: The 20% divestment of INCO's shares was approved within the Contract of Work (CoW) in 2014. INCO is currently traded at 0.89x PBV.
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ANTM IJ will divert the budget previously prepared for a stock buyback amounting to IDR100 billion. The decision was made due to the increasing price and trading volume caused by market conditions that began to show a more positive situation. However the budget will be optimized for the company's operational needs and development investment projects amid pandemic conditions and uncertainty in global economic conditions. (Market Bisnis) MNCS Comment: Other than the improving price, the rising gold price also contributed to ANTM's stock performance. ANTM is currently traded at 0.81x PBV.
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TLKM IJ will be distributing IDR15.26 trillion of dividends with payout ratio reaching 81.78% of the net profit in FY19. The DPR is lower than last year reaching 90%, while the current dividend per share is at the level of IDR154.06/shares. This makes the dividend yield reach 4.69%. (Market Bisnis) MNCS Comment: The dividend payout ratio is slightly lower than 2019 but TLKM can still managed to distribute dividend. TLKM is currently traded at 17.45x PE.
IHSG Updates
JCI rose slightly by +0.35% to 4,942.28 on Friday (19/06), followed by a net foreign sell reaching IDR653.45 billion. This movement was the result from various accumulated sentiments of the BI 7DRR cut rate, Retail Sales slump, and the surplus in the balance of trade. Moreover, the large scale social restriction easing was not followed by a lower Covid-19 cases, conversely there are 862 additional cases making the total case in Indonesia reach 45.891 as of yesterday. Meanwhile, the Rupiah exchange rate against the USD was weakening at IDR14,100. We estimate JCI will move in the range of 4,816-5,040 while waiting for Loan Growth Data as of May 2020. Today's recommendation: AALI, WSKT, MAPI, ADRO.
Corporate Action
Cum Dividend Date: JSMR
Ex Dividend Date: UNTR
Cash Dividend Date: PTBA
Disclaimer On
AALI,
WSKT,
MAPI,
ADRO,
INCO,
ANTM,
TLKM
