Global Market Highlights
DJIA weakened by -0.43% on Tuesday (27/09), followed by the S&P500 (-0.21%) while the Nasdaq (+0.25%). Wall Street closed mixed, with positive catalysts came from the release of durable goods orders data on Aug-22 which fell -0.2% MoM or below the consensus at -0.4% MoM, and Aug-22 new home sales data of 0.68 million, higher than the consensus of 0.5 million. Meanwhile, pressure for Wall Street still came from the increase in the yield on the US T-note 10Y to its highest level for 12 years at 3.99%. Today, the market will be looking toward several data releases such as: 1) US MBA Mortgage Applications; 2) Germany GfK Consumer Confidence Oct; 3) France Consumer Confidence Sep.
Domestic Update
• The Ministry of Finance reported that the budget surplus reached IDR107.4 trillion (0.58% of GDP) until August 2022. MNCS Comment: The surplus was driven by state revenue which grew 49.8% YoY to IDR1,764.4 trillion and state expenditure which grew 6.2% YoY to IDR1,657 trillion.
• Furthermore, the national Covid-19 daily rate had increased by 1,976 active cases (27/09).
Company News
1. UNTR IJ plans to distribute interim dividends for the FY22F fiscal year of IDR3.05 trillion or IDR818 per share, cum interim dividends on the regular market and negotiations on 4-Oct'22 (Kontan). MNCS Comment: As a result, UNTR will offer an interim dividend yield of 2.45%. Currently, UNTR is traded at the level of 6.01x/1.60x PER/PBV.
2. TOBA IJ allocates USD500 million or IDR7.5 trillion up to FY25F to expand its business into renewable energy and electric vehicles (CNBC Indonesia). MNCS Comment: We view positively the company's efforts to commit to achieving carbon neutrality in FY30F, where previously TOBA had collaborated with GOTO regarding the procurement of 300 EVs to support Gojek's operations. Meanwhile, capital expenditure in FY22E is targeted at USD35 million for the needs of the EV and renewable energy segments. Currently, TOBA is traded at the level of 6.19x/1.33x PER/PBV.
3. WMPP IJ collaborates with PT Spade Investment International (SII) to export the company's products to China. Meanwhile, the products to be exported are in the form of chicken meat products and processed foods (Market Bisnis). MNCS Comment: We view positively the company's expansion into foreign markets, where we believe it will drive the company's revenue in the future, supported by the company's business integration. WMPP is currently traded at the level of 2.23x PBV.
IHSG Updates
JCI weakened by -0.21% to 7,112.45 on Tuesday (27/09), followed by net foreign sell which reached IDR994.11 billion. A number of sectors weakened and weighed on the index, led by the raw materials sector (-0.96%) followed by the financial sector (-0.34%). On the other hand, the strengthening sectors were led by the energy sector (+1.38%) followed by the property sector (+0.64%). The index was underperforming with other strengthening Asian bourses amid the release of South Korea's consumer confidence data in Sep-22 which rose to a level of 91.4 points (vs 88.8 in Aug-22). Investors were still worried about the potential for a global economic recession following the Fed's aggressive monetary tightening. On the other hand, the Rupiah exchange rate closed higher at IDR15,123/USD. We estimate that the JCI will move in the price range of 7,100-7,170. Today's recommendation: DOID, EXCL, JSMR, WMPP.
Corporate Actions
RUPS: EAST, BNII, TPMA
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