Global Market Highlights
DJIA strengthened by +2.80% on Tuesday (04/10), followed by the S&P500 (+3.06%) and the Nasdaq (+3.34%). Wall Street continued its gains as investors were looking at JOLTs job openings on Aug-22 amounted to 10.05 million, or below the consensus and the previous period of 10.77 million/11.17 million, respectively. Thus, this raised market participants' expectations for a less aggressive Fed monetary tightening and boosted Wall Street's pace. Today, the market will be looking toward several data releases such as: 1) US ISM Non-Manufacturing PMI Sep; 2) US Balance of Trade Aug; 3) UK S&P Global/CIPS UK Services PMI Final Sep.
Domestic Update
• Investors' appetite in the SBSN auction on Tuesday (10/04/22) has decreased as reflected in the value of incoming bids of only IDR7.05 trillion (vs IDR17.11 trillion in the 20 September 2022 auction). MNCS Comment: Lower investors' appetite in yesterday's auctions has made the total of SBSN issuance only IDR755 billion, far below from the indicative target of IDR5 trillion. Hence, the government will again conduct a green shoe option today. We believe that the decline in investors' interest was caused by the turmoil in global financial markets that triggered the US Treasury yields and the US Dollar index to strengthen.
• Furthermore, the national Covid-19 daily rate had increased by 2,031 active cases (04/10).
Company News
1. AALI IJ will distribute an interim cash dividend of IDR163.59 billion or equivalent to IDR85 per share from the FY22E net profit (Kontan). MNCS Comment: With this, AALI has the potential to distribute an interim dividend yield of 1.01%. With a net profit in 1H22 of IDR809.21 billion, the payout ratio reached 20.21%. AALI is currently traded at the level of 10.05x/0.78x PER/PBV.
2. INTP IJ reported that cement sales in Aug-22 reached 1.6 million tons, bringing total sales in 8M22 to 10 million tons (Market Bisnis). MNCS Comment: Cement sales volume in FY21 reached 16.9 million tons and the realization had reached 59% by 8M22. It is expected that by 4Q22, there will be an increase in sales volume as the development budget begins to be realized. Currently, INTP is traded at the level of 58.71x/1.87x PER/PBV.
3. ASII IJ will distribute an interim cash dividend of IDR3.56 trillion or equivalent to IDR88 per share, with cum interim dividend for the regular market and negotiations on 12-Oct'22 (Kontan). MNCS Comment: Therefore, ASII has the potential to distribute an interim dividend yield of 1.31%. Payout ratio of 20% of 1H22 net profit. ASII is currently traded at the level of 7.49x/1.48x PER/PBV.
IHSG Updates
JCI strengthened by +0.89% to 7,072.26 on Tuesday (04/10), followed by net foreign buy which reached IDR604.49 billion. The majority of sectors experienced strengthening and boosted the index rate, led by the energy sector (+3.18%) followed by the transportation sector (+2.17%). On the other hand, the weakening sectors were led by the technology sector (-0.25%) followed by the health sector (-0.17%). The strengthening of the index was in line with Wall Street, where investors were watching the release of the US PMI manufacturing data which contracted to a level of 50.9 points. Thus, market participants expected the Fed to reduce its aggressivity on monetary tightening, avoiding a potential global economic recession. On the other hand, the Rupiah exchange rate closed higher at IDR15,245/USD. We estimate that the JCI will move in the price range of 7,000-7,100. Today's recommendation: ANTM, ASII, MDKA, TINS.
Corporate Actions
RUPS: CENT
Public Expose: DMND, WSBP
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