Global Market Highlight

DJIA rose by +1.48% on Thursday (23/09) followed by S&P 500 (+1.21%), and Nasdaq (+1.04%). Wall Street ended at the green zone as investors appeared relieved about the Federal Reserve's stance on tapering stimulus and raising interest rates. A monthly taper of USD15 billion is not going to have that big of an effect. However, initial weekly jobless claims unexpectedly increased by 16,000, missing expectations for a 15,000 decline. Today the market will be looking forward to several data releases such as: 1) US Fed Chair Powell Speech; 2) Germany Ifo Business Climate; 3) Japan Inflation Rate YoY.

Domestic Update
• As of Aug-21 government financing program through securities issuance (SBN) reached IDR567.4tn or equivalent to 47% from the budget target. The value of government securities issuance decreased by 15.5% YoY. MNCS Comment: The adjustment in government securities issuance affected by 1) government budget reallocation and refocusing program; 2) burden sharing scheme between BI and government and also 3) budget deficit projection.
• Furthermore, there was an addition of 165 new Covid-19 cases in Jakarta yesterday.

Company News
1. BBCA IJ received approval from the EGMS for the corporate action stock split with a 1:5 ratio. The par value per share will be IDR12.5 from the previous IDR62.5. The stock split process is expected to be completed in October-21. (Emitennews). MNCS Comment: We see this corporate action as a positive sentiment for retail investors, where BBCA's share price becomes more affordable, especially with the increasing number of retail investors in Indonesia. Currently BBCA is trading at 28.06x/4.33x PE/PBV levels.
2. PPRE IJ is targeting new contracts with a value of around IDR700 billion in 2H21, the agregat of new contracts of IDR3.7 trillion until FY21E. As of August, PPRE's new contracts reached IDR3.5 trillion, or 95% of the total target (Kontan). MNCS Comment: We see that PPRE is currently continuing to conduct tenders and negotiations to complete their target in FY21E, namely infrastructure projects to mining service projects, including those in Sulawesi, Halmahera, Sumatra and Kalimantan. Currently PPRE is trading at 32.46x/1.06x PE/PBV levels.
3. DMMX IJ noted the addition of 5 million shares by PT Sicepat Ekspress Indonesia (SiCepat) with a total purchase of IDR14.15 billion. Currently SiCepat owns 5.75% of DMMX shares from the previous 5.68% (Trenasia). MNCS Comment: We see the addition of shares by SiCepat as part of the investment towards a unicorn company in the field of expedition. DMMX is currently trading at 91.33x/26.45x PE/PBV.

IHSG Updates
JCI strengthened by +0.56% to 6,142.71 on Thursday (23/09) followed by net foreign buy reaching IDR870.98 billion. JCI closed higher led by the energy sector (+2.19%), followed by the tech sector (+1.77%). On the other hand, the transportation sector weakened by -1.96%, followed by the industrial sector (-1.33%). The JCI ended positively due to the easing of the market's concerns as Evergrande from China stated that they are going to pay their obligations on time. Subsequently, clearer guidance from the Federal Reserve to implement tapering also has a positive impact on market participants. On the other hand, the Rupiah was stagnant at IDR14,243 level on the spot market. We estimate the JCI will move in the range of 6,100-6,170. Today's recommendations: BRMS, AGII, IMAS, MAPI.

Corporate Action
RUPS: RONY, MGLV, CNTX

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