Global Market Highlights
DJIA fell -0.61% on Wednesday (08/02), followed by the S&P500 (-1.11%) and the Nasdaq (-1.68%). Wall Street fell as investors watched the hawkish stance of the Fed, which plans to raise interest rates again and hold them for quite a long time. Today, the market will be looking toward several data releases such as: 1) US Initial Jobless Claims Feb 4; 2) US Continuing Jobless Claims Jan 28; 3) Germany Inflation Rate YoY Prel Jan.
Domestic Update
• Bank Indonesia reported the Consumer Confidence Index (CCI) in Jan-2023 of 123.0 or higher than Dec-2022 at 119.9. MNCS Comment: The increase in CCI was supported by the Consumer Expectation Index which increased to a level of 133.9 (vs 127.3 in Dec-2022). This also indicates that consumers are optimistic in looking at the economy going forward, including respondents with an IDR1-2 million spending group who have experienced an increase.
Company News
1. BBRI IJ posted IDR51.4 trillion consolidated net profit in FY22, or grew +67.15% YoY (Emiten News). MNCS Comment: Increase in net profit was supported by: 1) consolidated credit growth +9.2% YoY to IDR1,139.1 trillion (vs IDR1,042.9 trillion in FY21); 2) increase in NIM +15 bps YoY to 7.85% (vs 7.70% in FY21); 3) decrease in provision fees -31.3% YoY. Currently, BBRI is traded at the level of 2.45x PBV.
2. MIKA IJ realized the expansion by opening 2 new hospitals in Pamulang and Slawi (Kontan). MNCS Comment: As a result, the number of operating hospitals will increase to 29, thus there will be a potential addition of +320 new beds bringing the total bed capacity to 3,779 units. In addition, MIKA is also completing the construction of a new hospital at Grand Wisata this year. It is hoped that through this expansion it can encourage the company's performance going forward. Currently, MIKA is traded at the level of 42.36x/8.16 PER/PBV.
3. DMAS IJ reported that there is a request for 90 ha of industrial land with an investment potential of IDR2.7 trillion (Market Bisnis). MNCS Comment: We see that this cannot be separated from the land sales business for the company's data center which has succeeded in supporting the acquisition of marketing sales in FY22. Currently, DMAS is traded at the level of 7.91x/1.35x PER/PBV.
IHSG Updates
JCI strengthened +0.07% to 6,940.12 on Wednesday (08/02), followed by net foreign buy reaching IDR359.91 billion. A number of sectors experienced strengthening and boosted the index rate, led by the transportation sector (+1.03%) followed by the non-cyclical sector (+0.73%). On the other hand, sectors that experienced weakness were led by the technology sector (-0.73%) followed by the property sector (-0.46%). We see investors responding positively to the CCI in Jan-2023 which remains optimistic at 123.0. On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,100/USD. We estimate that the JCI will move in the price range of 6,915-6,970 pending the release of Retail Sales YoY Dec data. Today's recommendation: BBNI, EXCL, PNBS, SMDR.
Corporate Actions
Cum Right Issue: NOBU (IDR592/share)
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