Global Market Highlights
DJIA rose +1.55% on Wednesday (16/03), followed by the S&P 500 (+2.24%) and the Nasdaq (+3.77%). Wall Street continued its gains following positive developments from the Russia-Ukraine meeting. In addition, the increase in the benchmark interest rate which was in line with market expectations of 25 bps was accompanied by comments from The Fed Chair Powell who stated that the economic condition was very strong, thus supporting the monetary tightening policy. Then, it is also estimated that the rate hike thereafter is within the appropriate target range, triggering the US T-note 10Y yield to rise to 2.24%. Today, the market will be looking toward several data releases such as: 1) US Housing Starts FEB; 2) US FOMC Economic Projections; 3) UK BoE Interest Rate Decision.
Domestic Update
• Bank Indonesia (BI) is expected to hold the key interest rates unchanged in Mar-22 with BI 7 Day Reverse Repo Rate at 3.50%. MNCS Comment: Despite the FFR hike by 25 bps recently, we think the domestic benchmark policy rate will likely be kept unchanged until 1H22 due to low manageable inflation as well as rupiah's stability.
• Furthermore, the second dose of vaccination rate nationally has reached 73.0% or equivalent to 152.04 million people.
Company News
1. BMRI IJ plans to distribute dividends of IDR16.82 trillion, or equal to 60% of FY21 net profit with value of IDR360.64/share. Cum dividend date on March 18, 2022 (Bisnis Indonesia). MNCS Comment: The Company provided a higher dividend yield than the previous year, where in FY21 the yield was 4.54% (vs 3.3% in FY20). BMRI is trading at the level of 13.24x/1.81x PER/PBV.
2. ANTM IJ recorded a revenue increase of +40.45% YoY to IDR38.44 trillion in FY21 (vs IDR27.37 trillion in FY20). Net profit was recorded at IDR1.86 trillion in FY21, up +61.96% YoY (vs IDR1.15 trillion in FY20) (Bisnis Indonesia). MNCS Comment: We see that the company's positive performance was along with the increase of gold sales by +33% YoY to 29.38 tons. In addition, nickel ore sales also grew +135% YoY to IDR4.38 trillion in FY21. ANTM is trading at the level of 30.85x/2.76x PER/PBV.
3.PGAS IJ recorded a +5.23% YoY increase in revenue to USD3.03 billion in FY21 (vs USD2.88 billion in FY20). Meanwhile, net profit was recorded at USD303.82 million in FY21 (vs net loss of USD264,77 million in FY20). MNCS Comment: We see the company has successfully recorded a positive performance, supported by the increase in gas distribution volume to 871 BBTUD (vs 828 BBTUD in FY20). In addition, the number of customers in various sectors increased to 663,877 with a total pipeline length of 10,776 km. PGAS is trading at the level of 7.80x/0.94x PER/PBV levels.
IHSG Updates
JCI rose +1.07% to 6,992.39 on Wednesday (16/03), followed by net foreign buys which reached IDR2.03 trillion. The majority of sectors supported the index movement, led by the energy sector (+2.10%) followed by the consumer non-cyclical sector (+1.72%). On the other hand, the sector that led the decline was the property sector (-0.93%) followed by the technology sector (-0.90%). JCI also appreciated along with other Asian markets following a positive catalyst in world oil prices to contract and was greeted positively by market participants, reducing concerns about high inflation rates if oil prices continued to rise. On the other hand, the Rupiah weakened at IDR14,388/USD level. We estimate that the JCI will move in the range of 6,900-7,040 while waiting for Interest Rate Decision, Lending Facility Rate, and Deposit Facility Rate data. Today’s recommendation: BGTG, BEBS, CMNT, ASRI.
Corporate Action
RUPS: BBCA, WICO, BJTM
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