Global Market Highlights
DJIA was flat on Thursday (09/12) while the S&P 500 was down by -0.72% followed by Nasdaq (-1.71%). Wall Street ended lower due to investors turning their focus toward the upcoming inflation data and how it might influence the Federal Reserve's meeting next week. On the other hand, China’s inflation rate grew by +2.3% YoY in November-21 from previous at +1.5% YoY due to seasonal rising demands and rising food costs. In addition, the US weekly initial jobless claims fell to a 52 year low at 184,000 claims on December-21 indicating America’s accelerating jobs recovery. Today, the market will be looking toward several data released such as: 1) US Core Inflation Rate YoY; 2) Germany Inflation Rate YoY Final; 3) UK GDP YoY.
Domestic Update
• Indonesia's government bond market experienced outflows of IDR12.5 trillion throughout Dec-21. MNCS Comment: Along with the foreign outflows, Indo GB yields rose. Despite the increase in yields, the Indo GB remained fairly valued.
• Furthermore, the second dose of vaccination rate nationally has reached 48.4% or equivalent to 100.80 million people.
Company News
1. MEDC IJ acquired all shares issued by ConocoPhillips Indonesia Holding Ltd. (CHIL) of Phillips International Investment Inc. Through this transaction, expected to be completed in 1Q22, MEDC will have a minority stake in the gas pipeline network that supplies customers in Central Sumatra, Batam and Singapore (IQPlus). MNCS Comment: We see this action as a strategic step for the company that has the potential to generate positive cash flow and further strengthen the company’s business in the oil and gas industry. MEDC is trading at the level of 9.15x/0.83x PER/PBV.
2. FAST IJ targets sales growth in FY22E of IDR6.33 trillion or up +24.10% YoY (vs sales target of IDR5.10 trillion in FY21E). As of 9M21, FAST’s total sales recorded at IDR3.45 trillion or down -3.63% YoY (vs sales of IDR3.58 trillion in 9M20) (Bisnis Indonesia). MNCS Comment: The decline in the company’s performance was due to the Covid-19 pandemic and restriction on community activities in July and August. However, FAST is optimistic that 2022 will be the year of recovery, supported by the vaccination program by the government and relaxation of community restriction by preparing various strategies to increase sales through omnichannel. Currently, FAST is trading at level 3.73x PBV.
3. TFAS IJ PT SiCepat Ekspres Indonesia inaugurated a collaboration with PT TFAS Energi Indonesia (TEI), a subsidiary of PT Telefast Indonesia (TFAS)-MCAS Group and Volta, in the purchase of 10,000 electric motors (Emitennews). MNCS Comment: Through this cooperation, it is hoped that it will contribute positively to the company’s performance in the midst of the increasing expedition industry during the pandemic. In addition, TFAS is focusing on developing Volta electric motorbikes that have a positive impact on the environment by reducing carbon emissions. TFAS trading at the level of 159.15x/42.14x PER/PBV.
IHSG Updates
JCI strengthened by +0.61% to 6,643.93 on Thursday (09/12) followed by net foreign buy reaching IDR2.59 trillion. JCI closed higher in almost all sectors, led by the cyclical consumer sector (+1.96%), followed by the industrial sector (+1.65%). On the other hand, the basic material sector weakened by -0.03%. The strengthening of the JCI was driven by the strengthening that also occurred on Wall Street and the majority of Asian stock markets. Meanwhile, good news also came from South Africa which stated that cases of Omicron infection were not followed by a significant increase in hospitalizations. On the other hand, the Rupiah strengthened to IDR14,353 level in the spot market. We estimate the JCI will move in the range of 6,580-6,650 while waiting for the released data of Retail Sales YoY. Today's recommendations: SAME, MAPI, ESSA, BBYB.
Corporate Action
Cum dividend date: SGER (IDR9/share)
RUPS: PMMP, MTFN
Disclaimer On
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