Global Market Highlights
DJIA strengthened by +0.12% on Tuesday (11/10), while the S&P500 (-0.65%) and the Nasdaq (-1.10%). Wall Street closed mixed. Investors were watching the IMF which revised its global economic growth forecast from 2.9% to 2.7% in FY23F. In addition, the increase in the yield on the US T-note 10Y to the level of 4.00% also pressured the index. Today, the market will be looking toward several data releases such as: 1) US PPI MoM Sep; 2) UK GDP 3-Month Avg Aug; 3) UK GDP YoY Aug.
Domestic Update
• Bank Indonesia survey reported retail sales grew by 4.9% YoY in August-22 and is estimated to grow by 5.5% YoY in Sep-22. MNCS Comment: Retail sales performance remains positive indicating that the economic recovery is still continuing.
• Furthermore, the national Covid-19 daily rate had increased by 2,077 active cases (11/10).
Company News
1. UNTR IJ through the Suprabari Mapanindo Mineral (SMM) entity, reported that exploration costs in 3Q22 reached IDR4.45 billion. Drilling was carried out at 11 points in North Barito, Central Kalimantan (Emiten News). MNCS Comment: It is hoped that this exploration will increase the company's total resources, where SMM's coal reserves are estimated at 63 million tons. Currently, UNTR is traded at the level of 5.80x/1.54x PER/PBV.
2. ANTM IJ reported exploration costs in 3Q22 to be IDR38.90 billion, where the exploration focused on gold, nickel and bauxite commodities (Emiten News). MNCS Comment: Exploration costs in 3Q22 rose by +2.07% YoY. It is hoped that this exploration will increase the company's resources in the future, where nickel ore reserves reach 1.44 billion wmt, bauxite 586 million wmt and gold 37 million tons. ANTM is currently traded at the level of 14.92x/2.12x PER/PBV.
3. BUMI IJ will conduct a private placement after obtaining approval from the EGMS. The number of shares in the private placement is 200 billion shares with an exercise price of IDR120 per share (Kontan). MNCS Comment: Therefore, the funds obtained by BUMI will be IDR24 trillion or USD1.6 billion. The priority allocation of funds will be used to fulfill the company's short-term obligations, where the ratio of liabilities to equity will decrease from 4.0x to 0.8x, while net gearing ratio will become net cash and have the opportunity to increase profitability as the financial burden decreases. BUMI is currently traded at the level of 4.73x PER.
IHSG Updates
JCI weakened -0.79% to 6,939.15 on Tuesday (11/10), followed by net foreign buy which reached IDR28.67 billion. The majority of sectors weakened and weighed on the index's pace, led by the technology sector (-2.15%) followed by the transportation sector (-0.85%). On the other hand, the sector that experienced strengthening was the cyclical sector (+0.16%). The index was under pressure as investors watching the IMF revised its economic growth projection in the developing Asia region in FY22E from +4.6% in Jul-22 to +4.4%. Apart from that, investors were also keeping an eye on the release of retail sales data for Aug-22 which grew slower by +4.9% YoY (vs +6.2% in Jul-22). On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,358/USD. We estimate that the JCI will move in the price range of 6,926-7,000 pending the release of Car Sales YoY Sep data. Today's recommendation: ESSA, KRYA, MPMX, TINS.
Corporate Actions
RUPS: NIRO, OBMD, MBSS
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