Global Market Highlights
DJIA strengthened by +2.15% on Friday (15/07), followed by the S&P 500 (+1.92%) and the Nasdaq (+1.79%). Positive catalysts driving Wall Street's strengthening include: 1) the release of US Jun-22 retail sales data which rose +1.0% MoM (vs +0.8% MoM consensus); 2) weakening of the US T-note 10Y yield to 2.93%; 3) The release of the Michigan 5Y Inflation Expectations Prel Jul-22 with 2.8%, lower than 3.1% in Jun-22. Today, the market will be looking toward several data releases such as: 1) US NAHB Housing Market Index; 2) US Net Long-Term TIC Flows; 3) UK BoE Saunders Speech.
Domestic Update
• Indonesia's trade balance surplus in Jun-22 reached USD5.09 billion, exceeding the consensus of +USD3.48 billion. MNCS Comment: The increase in the surplus was supported by the increase in exports (+40.68% YoY) in line with the lifting of the CPO export ban and the increase in global commodity prices. The 26 consecutive months of trade balance surplus is expected to have a positive impact on the current account balance and support Rupiah fundamentals.
• Furthermore, the national Covid-19 daily rate had increased by 3,540 active cases (17/07).
Company News
1. STAA IJ will distribute a final cash dividend for the FY21 financial year of IDR109.03 billion or equivalent to IDR10 per share (Kontan). MNCS Comment: Thus, STAA offers a dividend yield of 0.8%. The interim dividend distribution of IDR250 billion from FY21 net profit was made before the IPO. Currently, STAA is traded at 8.35x/3.85x PER/PBV levels.
2. PALM IJ recorded a decrease in 1H22 net profit of IDR88.91 billion or a decrease of -88% YoY (vs Rp761.77 billion in 1H21). Meanwhile, the company's revenue was recorded at IDR0 (vs. IDR156.57 billion in 1H21) (Kontan). MNCS Comment: This was in line with the sale of the corporate entity, PT Mutiara Agam, which was the main source of income as an effort to shift its business as an investment company. Currently, PALM is traded at 30.23x/0.96x PER/PBV levels.
3. MTDL IJ announced its partnership with Allied Telesis through its corporate entity, PT Synnex Metrodata Indonesia (SMI). Allied Telesis is a switch provider company with a focus on the health, education, government and manufacturing industries (Kontan). MNCS Comment: We view positively that this collaboration would increase the company's product portfolio and potentially increase its market share in line with the rapid development of IT. Currently, MTDL is traded at 10.54x/2.37x PER/PBV.
IHSG Updates
JCI weakened by -0.57% to 6,651.90 on Friday (15/07), followed by net foreign buy which reached IDR56.70 billion. The majority of sectors weakened and weighed on the index, led by the energy sector (-2.87%) followed by the industrial sector (-1.36%). On the other hand, the strengthening sector was led by the financial sector (+0.97%) followed by the cyclical sector (+0.41%). The weakening of the index was in line with the majority of other Asian bourses. Investors were watching China's 2Q22 GDP growth of +0.4% YoY or below the consensus of +1.0% YoY. On the other hand, the Rupiah exchange rate closed lower at Rp14,993/USD. We estimate that the JCI will move in the price range of 6,600-6,730. Today's recommendation: BBTN, GJTL, TLKM, INDF.
Corporate Action
Cum Dividend: ASBI (IDR5.7/share)
IPO: DEWI (IDR100/share)
RUPS: YELO
Disclaimer On
