Global Market Highlights
The DJIA rose by +0.58% on Monday (20/11), followed by S&P500 (+0.74%) and Nasdaq (+1.13%). Wall Street closed higher amid the release of the CB Leading Index in Oct-2023, which experienced a -0.8% MoM decline (vs -0.7% MoM in Sep-2023). Meanwhile, the drop in UST yield to the level of 4.42%, which drove the strengthening of technology stocks, successfully supported the index's momentum. Today, the market will be looking toward several data releases such as: 1) US Existing Home Sales MoM Oct-23; 2) Canada Inflation Rate YoY Oct-23; 3) US Redbook YoY Nov/18.
Domestic Update
Bank Indonesia (BI) reported that the Weighted Net Balance (SBT) in Oct-2023 experienced a slowdown to 82.1% (vs 92.6% in Sep-2023). MNCS Comment: This indicates a deceleration in credit growth in Oct-2023, with the realization of banking credit growth in Sep-2023 reaching +8.7% YoY. However, we anticipate a rebound in credit growth in Nov-2023, as SBT increases to 92.9%. We see the festive season in 4Q23 as a catalyst, enabling credit growth in FY23E to still achieve the lower band target of 9% YoY.
Company News
1. ASII IJ targets the operationalization of a data center with a total area of 5,300 sqm by the end of 2024 (Market Bisnis). MNCS Comment: We view the company's expansion into the data center business, through a strategic collaboration with Equinix via JV, positively. With the ongoing momentum of digital transformation, we expect this to add to the company's revenue stream in the future and provide support to its other business units. Currently, ASII is traded at a level of 6.85x/1.23x PER/PBV.
2. PTPP IJ recorded a new contract value of IDR29.3 trillion until 10M23 (Market Bisnis). MNCS Comment: We note that the new contract value grew +34.31% YoY (vs IDR21.8 trillion in 10M22). Road and bridge projects contribute the most to the portfolio of new contract values, reaching 37.7%. With a target of achieving a new contract value of Rp34 trillion in FY23E, the realization until 10M23 is 83.2%. Currently, PTPP is traded at a level of 11.83x/0.33x PER/PBV.
3. AMOR IJ will distribute an interim dividend of IDR55.3 billion, or equivalent to IDR25 per share (Market Bisnis). MNCS Comment: Hence, we estimate that AMOR will offer a dividend yield of 2.6%. In 9M23, AMOR recorded a net profit increase of +29.4% YoY to IDR29.8 billion (vs IDR23.0 billion in 9M22). Currently, AMOR is traded at a level of 17.72x/6.59x PER/PBV.
IHSG Updates
The JCI closed higher by +0.25% at 6,994.89 on Monday (20/11), followed by a net foreign sell of IDR266.17 billion. Most sectors experienced gains and propelled the index, led by the infrastructure sector (+3.30%), followed by the cyclical sector (+0.91%). On the other hand, sectors experiencing losses were led by the basic materials sector (-1.19%), followed by the property sector (-0.39%). The index strengthened amid a mixed close in the Asian markets, where investors positively responded to PBOC's decision to maintain loan interest rates in Nov-2023. Additionally, we see investors adopting a wait and see approach ahead of the announcement of Indonesia's current account data in 3Q23. The Rupiah closed higher at IDR15,445/USD. We estimate the IHSG will move within the price range of 6,958-7,019. Today's Recommendations: ADRO, ANTM, BUKA, HRUM.
Corporate Actions
EGMS : ASDN, DMND, GDST
Disclaimer On
