Global Market Highlights
DJIA fell -0.17% on Tuesday (09/05), followed by the S&P500 (-0.46%) and the Nasdaq (-0.63%). Wall Street closed lower as investors waited and saw ahead of the release of Apr-2023 inflation rate data which is expected to remain unchanged +5% YoY, as well as renewed concern over the debt ceiling. Today, the market will be looking toward several data releases such as: 1) US Inflation Rate YoY Apr; 2) US Core Inflation Rate YoY Apr; 3) Germany Inflation Rate YoY Final Apr.
Domestic Update
• The Consumer Confidence Index increased to 126.1 in Apr-2023 (vs 123.3 in Mar-2023), driven by increases in the Economic Conditions Index (IKE) and Consumer Expectations Index (IEK) of 3 each, 5 points and 2 points MoM. MNCS Comment: Incomes and employment rate have increased, followed by strengthened consumer expectations of future economic conditions, which is induced by increased mobility of the population and a manageable, down trending inflation rate.
Company News
1. TOWR IJ decided to distribute cash dividends in the FY22 fiscal year reaching IDR1.2 trillion. Meanwhile, with an interim dividend that has been distributed of IDR6 per share, the remaining IDR18.01 per share will be distributed with a cum date on the regular market and the negotiating market on 15th May 2023 (Emiten News). MNCS Comment: Thus, with the remaining final dividend to be distributed, TOWR will offer a dividend yield of 1.78%. Currently, TOWR is traded at the level of 17.12x/3.39x PER/PBV.
2. POWR IJ will distribute a final cash dividend of USD44.8 million or equivalent to IDR41.68 per share (Emiten News). MNCS Comment: Therefore, we estimate POWR will offer a dividend yield of 6.04%. DPR for the FY22 financial year was recorded at 96%, or higher than the previous financial year which was 35.32%. Currently, POWR is traded at the level of 5.49x/1.01x PER/PBV.
3. INTP IJ has just realized a capex allocation of IDR76 billion from the FY23E target (Business Market). MNCS Comment: The realization of capex allocation for FY23E target of IDR1.2 trillion is 6.3%. We anticipate that the capex absorption will start to increase in 2Q23 to support the increased volume in line with the government's increased investment before the FY24F election. Additionally, we expect the absorption to increase in 4Q23 due to terminal construction in Samarinda and other facilities. Currently INTP is trading at the level of 25.65x/1.91x PER/PBV.
IHSG Updates
JCI strengthened +0.15% to 6,779.98 on Tuesday (09/05), followed by net foreign buy reaching IDR30.46 billion. A number of sectors experienced strengthening and boosted the index, led by the technology sector (+1.94%) followed by the property sector (+1.45%). On the other hand, sectors that experienced a decline were led by the health sector (-0.37%) followed by the raw materials sector (-0.21%). The index weakened amid the release of IKK Apr-2023 data which rose to a level of 126.1 (vs 123.3 in Mar-2023), where investors would wait and see ahead of the release of US Apr-2023 inflation data which is expected to remain at 5% YoY. The rupiah closed lower at IDR14,730/USD. We estimate that the JCI will move in the price range of 6,757-6,822. Today's recommendation: BIRD, GOTO, PGAS, PNLF.
Corporate Actions
Cum Dividend: SMSM (IDR25/share), LUCY (IDR4.7/share), EPMT (IDR205/share)
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