Global Market Highlight
DJIA fell by -1.63% on Tuesday (28/09) followed by S&P 500 (-2.04%), and Nasdaq (-2.83%). The Wall Street ended sharply low driven by rising US Treasury yields, deepening concerns over persistent inflation, and the risk of a US default due to failure to raise the debt ceiling. The US 10-year Treasury yield topped 1.5%, rising to its highest level since June-21. On the other hand, the Conference Board’s consumer confidence index fell unexpectedly to a reading of 109.3 from 115.2, missing economists estimates for 115 as the impact of the delta variant weighed on sentiment. Today the market will be looking forward to several data releases such as: 1) US Fed Chair Powell Speech; 2) US MBA Mortgage Applications; 3) UK Mortgage Approvals.
Domestic Update
• Government successfully raised IDR12 trillion funding from yesterday's debt securities auction. Total incoming bids were at IDR58.83 trillion. MNCS Comment: In the last auction conducted yesterday, the government has set the indicative target lower from the previous auction. Total incoming bids were also lower from the previous auction. However the weighted average yield awarded rose for every series. This was in line with the secondary market performance indicated by higher yield driven by rising government bond yields globally.
• Furthermore, there was an addition of 104 new Covid-19 cases in Jakarta yesterday.
Company News
1. ANTM IJ recorded IDR17.28 trillion revenue in 1H21 or an increase of +87.02% YoY (vs IDR9.24 trillion in 1H20). COGS increased from IDR7.92 trillion in 1H20 to IDR14.11 trillion in 1H21. ANTM recorded IDR1.16 trillion net profit in 1H21 (vs net loss of IDR159.41 billion in 1H20) (CNBC Indonesia). MNCS Comment: ANTM's revenue was driven by gold sales which increased to IDR11.87 trillion (vs IDR6.39 trillion in 1H20) and nickel ore sales of IDR2.04 trillion (vs IDR85.45 billion in 1H20). Currently ANTM is trading at 23.50x/2.75x PE/PBV levels.
2. UNTR IJ will distribute an interim dividend of IDR335/share or IDR1.25 trillion for the 2021 financial year period. The cum dividend date is on October 6, 2021 (Emitennews). MNCS Comment: the payout ratio stood at 27.65% from the 1H21 profit of IDR4.52 trillion. Dividend yield reached 1.39%. Currently UNTR is trading at 9.91x/1.39x PE/PBV levels.
3. CTRA IJ recorded marketing sales of IDR4 trillion up to 8M21. The realization value was 67.79% of the total marketing sales target in FY21E of IDR5.9 trillion (Emitennews). MNCS Comment: The marketing sales accomplishment was driven by the stimulus from the government's 100% DTP VAT program. CTRA sales have the potential to increase with the extension of the incentive until the end of FY21E. CTRA is currently trading at 17.08x/1.04x PE/PBV.
IHSG Updates
JCI weakened by -0.15% to 6,113.11 on Tuesday (28/09) while followed by net foreign buy reaching IDR738.25 billion. JCI closed lower led by the transportation sector (-1.97%), followed by the health sector (-1.53%). On the other hand, the energy sector strengthened by +6.98%, followed by the cyclical consumer sector (+2%). The decline in the JCI was due to the lack of positive domestic catalysts, and investors still await and see for the further sentiment. Subsequently, the JCI was weighted by the increase of 10-year tenor of US government bonds yield. On the other hand, the Rupiah weakened at IDR14,273 level on the spot market. We estimate the JCI will move in the range of 6,060-6,150. Today's recommendations: MEDC, LPKR, AMRT, JPFA.
Corporate Action
Cum Dividend Date: KMDS (IDR7,5/share)
RUPS: DADA, COCO
Disclaimer On
