Global Market Highlights
DJIA weakened -0.16% on Wednesday (16/02), followed by the Nasdaq (-0.11%) while the S&P 500 is up +0.09%. Wall Street closed mixed amid the release of economic data of the retail sales from Jan-22 which grew +3.8% MoM (vs +2% consensus/-2.5% in Dec-21). Meanwhile, Jan-22 imports values up +2% MoM (vs. +1.3% consensus/-0.4% in Dec-21). Another thing that also weighed on the market was the World Bank, which called on the Fed to immediately raise interest rates, seeing that the spike in inflation that occurred as commodity prices were creeping up could trigger price increases. From the Covid-19 development situation, the weekly average addition of positive US cases continues to slop at 136,190, lower than mid-Jan-22 which reached 802,223 cases. Today, the market will be looking toward several data releases such as: 1) US FOMC Minutes; 2) US Fed Bullard Speech; 3) US Initial Jobless Claims.
Domestic Update
• Indonesia daily Covid-19 infection hit an all time high with 64,718 yesterday according to official data. Daily cases were above the peak of the 2nd wave outbreak in 3Q21. MNCS Comment: Domestic daily cases were approaching our upper case scenario. We estimated the peak of daily cases to hit 72,133 in the 3rd week of Feb-22 and it takes 77 days for the curve to flatten, meaning that the 3rd wave is expected to end in the 3rd week of Mar-22 based on our model.
• Furthermore, the second dose of vaccination rate nationally has reached 65.9% or equivalent to 137.16 million people.
Company News
1. ANTM IJ recorded an increase in production and sales volume in FY21. The highest growth was achieved by nickel ore which recorded a production increase of +131% YoY to 11.01 million wmt and a sales increase of +132% YoY to 7.64 million wmt in FY21 (Bisnis Indonesia). MNCS Comment: We see that the company might continue its good performance along with the potential of increasing demand in nickel supported by the development of the electric car battery industry. ANTM is trading at the level of 19.81x/2.22x PER/PBV.
2. BGTG IJ plans to conduct a right issue with an exercise price of IDR200 per share and target to obtain IDR1.11 trillion of funds. The company will issue 5.59 billion new shares with a nominal value of IDR 100 per share (Investor Daily). MNCS Comment: The proceeds from the right issue will be used to strengthen the company's capital structure and business development in credit with digital services, which is expected to encourage the growth of company's performance in the future. BGTG is trading at the level of 2.71x PBV.
3. BBNI IJ plans to build Indonesian metaverse and digital expansion by cooperating with WIR Group. The Company will provide banking services that connect the real and virtual worlds immersively (IQ Plus). MNCS Comment: We see that the collaboration with WIR Group might give added value for the company and develop its digital banking. This also can be an opportunity for the company to attract more customers, especially millennials in the future. BBNI is trading at the level of 13.60x/1.20x PER/PBV.
IHSG Updates
JCI rose +0.63% to 6,850.20 on Wednesday (16/02), followed by net foreign buys which reached IDR967.49 billion. The sectors that supported the strengthening of the JCI were led by the cyclical sector (+3.51%) followed by the infrastructure sector (+1.90%). On the other hand, the sector that is holding back the index rate is the technology sector (-0.49%) followed by the industrial sector (-0.49%). The positive catalyst that drives the JCI is still around the easing of tensions in the Russia-Ukraine conflict where Russia chose to withdraw its troops and is willing to open a diplomatic route with western countries. In addition, improving financial markets and economic data in the form of the trade balance again posted a surplus on Jan-22 of USD930 million. Another good news is that the government is less likely to take more aggressive steps towards tightening mobility considering that the impact of the Omicron variant does not threaten health facilities and focuses on maintaining economic recovery. On the other hand, the Rupiah strengthened at IDR14,258/USD level. We estimate that the JCI will move in the range of 6,796-6,874. Today’s recommendation: DGIK, AGRO, SRTG, MAPA.
Corporate Action
Cum Right Issue Date: ABBA (IDR150/share)
RUPS: CMNP, TNCA
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