Global Market Highlights
DJIA strengthened +0.07% on Wednesday (7/12), while the S&P500 (-0.19%) and Nasdaq (-0.51%). Wall Street closed mixed as investors grew concerned about a potential global recession, after China reported November 2022 trade balance data of USD 69.84 billion, or still below consensus and October 2022 realization of USD 78.1/85.15 billion respectively. Today, the market will be looking toward several data releases such as: 1) US Continuing Jobless Claims; 2) US Initial Jobless Claims; 3) Japan Eco Watchers Survey Current Nov.
Domestic Update
• Bank Indonesia reported that foreign exchange reserves in Nov-2022 rose by USD3.8 billion to USD134 billion. MNCS Comment: The increase was the biggest since Aug-2021, driven by tax and service revenues, as well as oil and gas foreign exchange reserves.
• Furthermore, the national Covid-19 daily rate had increased by 3,351 active cases (7/12).
Company News
1. ANTM IJ announced the groundbreaking target for the integrated electric vehicle battery project in 1H23 (Market Bisnis). MNCS Comment: We view this target positively in line with the increasing EV trend, and is expected to increase the company's business value going forward. However, we anticipate an increase in leverage in line with the intensified expansion. Currently, ANTM is traded at the level of 15.12x/2.15x PER/PBV.
2. BUMI IJ completed a private placement related to bond conversion (OWK) worth IDR2.19 trillion (Market Bisnis). MNCS Comment: Therefore, there will be an additional 27.4 billion shares, making BUMI's total shares reach 371.3 billion from the previous 343.8 billion shares, thus having the potential to reduce EPS. However, the OWK conversion also fully paid BUMI's debt portion for PKPU. Currently, BUMI is traded at the level of 8.55x PER.
3. DOID IJ will distribute an interim dividend for the FY22E financial year of USD5.15 million, with cum dividend date for the regular market and negotiations on December 15, 2022 (Market Bisnis). MNCS Comment: With outstanding shares reaching 8.62 billion shares and Bank Indonesia's middle rate on December 7, 2022 at IDR15,576/USD, the dividend per share is IDR9.3 per share, equivalent to dividend yield of 2.9%. Currently, DOID is traded at the level of 6.72x/0.73x PER/PBV.
IHSG Updates
JCI weakened -1.07% to 6,818.75 on Wednesday (7/12), followed by net foreign sell which reached IDR1.68 trillion. The majority of sectors experienced weakness and weighed on the index, led by the transportation & logistics sector (-1.73%) and followed by the technology sector (-1.59%). On the other hand, the sectors that experienced strengthening were the health sector (+2.79%) followed by the energy sector (+0.55%). The weakening of the index was in line with the weakening of Asian stock exchanges. We see market participants reacting negatively to the release of China's trade balance data in Nov-2022 which decreased to USD69.8 billion, lower than the realization in Oct-2022 (USD85.1 billion) and the consensus estimate (USD78.1 billion). On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,638/USD. We estimate that the JCI will move in the price range of 6,800-6,926 pending the release of Consumer Confidence Nov data. Today's recommendation: ADRO, BIPI, SIDO, TKIM.
Corporate Actions
Cum Rights: AGRO (IDR500/share), BGTG (IDR120/share)
IPO: PADA (IDR100/share)
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