Global Market Highlights
The DJIA strengthened by +0.68% on Tuesday (19/12), followed by S&P500 (+0.59%) and Nasdaq (+0.66%). Wall Street gained as the UST yield fell to 3.92%. This decrease was triggered by dovish comments from The Fed, reaffirming optimism about a rate cut in FY24F. Meanwhile, investors also positively responded to the release of Housing Starts data in Nov-2023, showing a +14.8% MoM growth, which is expansive compared to the previous month's +0.2% MoM. Today, the market will be looking toward several data releases such as: 1) US Current Account Q3; 2) UK Inflation Rate YoY Nov-23; 3) US CB Consumer Confidence Dec-23.
Domestic Update
Bank Indonesia (BI) reported that the Weighted Net Balance (WNB) of new loan disbursements in Nov-2023 reached 70.4%. MNCS Comment: The WNB survey in Nov-2023 decreased compared to the achievement in Oct-2023, which was 82.1%. This indicates the potential for a slowdown in credit growth in Nov-2023. We expect banking credit growth in Nov-2023 to approach the lower band target at 9% YoY.
Company News
1. PGEO IJ has initiated the construction of the Lumut Balai Unit 2 Geothermal Power Plant (PLTP) in Muara Enim, South Sumatra (CNBC Indonesia). MNCS Comment: We note that the PLTP has a capacity of 55 MW, bringing the total capacity of the PLTP Lumut Balai to 110 MW. We see PGEO's expansion positively as it adds production capacity, anticipating it to boost the company's performance and take advantage of incentives in the EBT sector. Currently, PGEO is traded at a level of 18.47x/1.70x PER/PBV.
2. BBRI IJ will distribute an interim dividend amounting to IDR12.7 trillion, or equivalent to IDR84 per share (Emiten News). MNCS Comment: With a net profit of IDR44.0 trillion until 9M23, we note a +12.4% YoY growth, resulting in a payout ratio of 28.9%. Furthermore, we estimate that BBRI will offer a dividend yield of 1.5%. Currently, BBRI is traded at a level of 2.74x PBV.
3. IMAS IJ will carry Great Wall Motors (GWM) products in the domestic market through CBU imports in FY24F (Market Bisnis). MNCS Comment: We see IMAS seizing the opportunity presented by the updated policy, Perpres No.79 2023, regarding the Acceleration of Battery-Based Electric Motor Vehicles (KBLBB), which can accelerate future EV growth. With an expanding product portfolio, we expect this to act as a sales cushion for the company in the future. Currently, IMAS is traded at a level of 9.45x/0.40x PER/PBV.
IHSG Updates
The JCI increased by +0.96% to 7,187.85 on Tuesday (19/12), followed by net foreign buy of IDR194.62 billion. Most sectors strengthened and moved the index up, led by the infrastructures sector (+1.65%) and followed by the transportation & logistic sector (+1.63%). Meanwhile, the property & real estate sector weakened (-0.22%). The index's strength aligned with the majority of other Asian markets, where investors positively responded to the BoJ's policy of maintaining the interest rate at -0.1%. The Rupiah closed higher at IDR15,505/USD. We estimate the IHSG will move within the price range of 7,118-7,201. Today's Recommendations: BMRI, BRPT, EXCL, INKP.
Corporate Actions
EGMS : DPUM, TDPM
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