Global Market Highlights
DJIA was down by -2.11% on Friday (07/10), followed by the S&P500 (-2.80%) and the Nasdaq (-3.80%). Wall Street was pressured from the increasing investor concerns regarding the Fed's aggressive monetary tightening going forward. The release of US employment market data in Sep-22 showed that the figure fell to 3.5% (vs 3.7% in Aug-22) or below consensus at 3.7%. Meanwhile, non-farm payrolls for Sep-22 were 263,000, or above the consensus of 250,000. Today, the market will be looking toward several data releases such as: 1) US Fed Brainard Speech; 2) US Fed Evans Speech; 3) France 12-Month BTF Auction.
Domestic Update
• Indonesia FX reserves position decreased by USD1.4bn to USD130.8bn in Sep-22. MNCS Comment: The decline in FX reserves position was driven by external debt payment and IDR stabilization. Fx reserves position is currently equal to 5.9 months of imports.
• Furthermore, the national Covid-19 daily rate had increased by 999 active cases (09/10).
Company News
1. CTRA IJ recorded a marketing sales value of IDR6.5 trillion up to 9M22 (Kontan). MNCS Comment: With the FY22E marketing sales target of IDR8.2 trillion, the realization up to 9M22 has reached 79.27%. Meanwhile, marketing sales grew by +29.38% YoY (vs IDR5.02 trillion in 9M21). We are optimistic that CTRA can achieve this target, supported by a solid landed residential segment and a capex of IDR600 billion in FY22E. Currently, CTRA is traded at the level of 8.73x/0.98x PER/PBV.
2. SILO IJ reported that digital segment revenue growth in 1H22 reached +158% YoY, and contributed 14% of 1H22 revenue (Kontan). MNCS Comment: Thus, the company's digital revenue in 1H22 has reached IDR617 billion. We see that the increase was supported by an increase in the number of users by +23% YoY. We also view positively the company's digital acceleration, where this can increase integration in the company's health ecosystem and encourage future revenue performance. Currently, SILO is traded at the level of 31.70x/2.06x PER/PBV.
3. SMGR IJ through its entity Semen Tonasa, reported energy efficiency of IDR212 billion in FY19-FY21. It was recorded that the energy saved was 3.80 million GJ (Emiten News). MNCS Comment: Efficiency was achieved through lowering the top preheater temperature, increasing alternative fuels, and coal unloading. It is hoped that the company can continue to improve this efficiency, one of which is through the use of alternative fuels amid the high HBA. SMGR is currently traded at the level of 25.85x/1.18x PER/PBV.
IHSG Updates
JCI closed down -0.70% to 7,026.78 on Friday (07/10), followed by net foreign sell which reached IDR1.30 trillion. The majority of sectors experienced weakness and weighed on the index, led by the infrastructure sector (-1.29%) followed by the transportation sector (-1.13%). On the other hand, the sectors that experienced strengthening were the energy sector (+1.48%) followed by the raw materials sector (+0.06%). The index's decline was in line with Asian markets and Wall Street. Investors tend to wait and see ahead of the release of US employment data, which could influence the Fed's decision to tighten monetary policy. In addition, investors were also watching the release of data on Indonesia's foreign exchange reserves in Sep-22, which fell USD1.40 billion to USD130.8 billion. On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,253/USD. We estimate that the JCI will move in the price range of 6,970-7,070 pending the release of Consumer Confidence Sep data. Today's recommendation: ADRO, INCO, MEDC, TLKM.
Corporate Actions
RUPS: BOSS, BRAM
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