Global Market Highlight
DJIA slipped by -0.18% on Thursday (16/09) followed by S&P 500 (-0.16%), while Nasdaq strengthened by +0.13%. Wall Street closing was mixed in the midst of monthly retail sales renewed expectations for the Federal Reserve to tighten monetary policy. Retail sales rose by +0.7% on August-21. That confounded economists’ forecast for a 0.8% decline. On the other hand, The US Department of Labor reported initial jobless claims increased by 20,000 to 332,000 in the week ended Sept. 11, missing forecasts for a 18,000 decline. Today the market will be looking forward to several data releases such as: 1) US Michigan Consumer Sentiment Prel; 2) Eurozone Core Inflation Rate YoY Final; 3) UK Retail Sales YoY.
Domestic Update
• According to the Ministry of Energy & Mineral Resources (MEMR), the government revenue from mineral and coal sector has reached IDR44.5tn or equivalent to 113.92% from 2021 target as of September-21. MNCS Comment: The figure was even higher than the 2020 value of IDR34.6tn which also booked a 110% from the government target. This was attributable to rising commodity prices and demand which boosted export primarily from mining sectors such coal, nickel, copper and iron.
• Furthermore, there was an addition of 176 new Covid-19 cases in Jakarta yesterday.
Company News
1. BNBA IJ will conduct a rights issue of up to 750 million shares or 32.47% of the total paid-up capital. This action aims to fulfill the minimum core capital in 2021 so that the company's minimum core capital is IDR2 trillion (Emitennews). MNCS Comment: This action was able to strengthen BNBA's capital structure which can be used to add working capital to support business as a private foreign exchange commercial bank, especially in the context of providing credit to customers and corporate capital expenditures. Currently BNBA is trading at 55.45x/2.19x PE/PBV levels.
2. BINA IJ will conduct a rights issue at a price range of IDR4,200-IDR4,380 per share with a total number of shares being issued is 287.71 million shares. The target for obtaining funds from the rights issue is around IDR1.23 trillion (IQ Plus). MNCS Comment: We see this corporate action as BINA's strategy to accelerate digitalization. The company is expected to complete a business plan in the form of digital-based banking services before the end of FY21E. Currently BINA is trading at 428.07x/19.60x PE/PBV levels.
3. RANC IJ will officially be acquired by Blibli.com from the Djarum Group through direct negotiations with shareholders. The number of shares acquired was 797.9 million shares or about 51% of the company's shares with a value of IDR1.76 trillion (Bisnis Indonesia). MNCS Comment: We see that this acquisition will integrate the company's business to increase Blibli Mart online groceries through RANC's main sales, namely fresh products. Subsequently, this corporate action will add RANC’s new revenue stream. RANC is currently trading at 108.96x/7.38x PE/PBV.
IHSG Updates
JCI ended stagnant by -0.00% to 6109.94 on Thursday (16/09) followed by net foreign buy reaching IDR376.63 billion. JCI closing was stagnant followed by weakness in several sectors led by the tech sector (-2.37%), followed by the health sector (-1.12%). On the other hand, the transportation sector strengthened by +2.30% followed by the financial sector +0.44%. The slowdown in China's economic growth became the sentiment in last day's trade. In August-21, China's industrial production grew by +5.3% MoM or lower than the previous month (+6.4% July-21) as well as being the weakest since July-20. On the other hand, the Rupiah weakened at IDR14,253/USD level on the spot market. We estimate the JCI will move in the range of 6,020-6,150 while waiting for the release data of motorbike sales YoY. Today's recommendation: MLPL, RALS, BANK, LSIP.
Corporate Action
RUPS: HEXA, DADA
Public Expose: IPCM
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