Global Market Highlights
DJIA rose by (+0.74%) on Wednesday (22/12) followed by S&P 500 (+1.02%) and Nasdaq (+1.18%). Wall Street closing driven by news that Pfizer’s Covid-19 pill has received emergency use authorization. Pfizer’s Paxlovid is the first at-home medication authorized for Covid-19. On the other hand, the US home sales increased for the third straight month in November-21, and that gross domestic product increased at a +2.3% YoY annualized rate in the July-September quarter, revised up from the +2.1% YoY rate estimated last month. Subsequently, the US consumer confidence index rose to 115.8 in December, well above consensus for a reading of 111.0. Today, the market will be looking toward several data releases such as: 1) US Core PCE Price Index YoY; 2) US Durable Goods Orders MoM; 3) US Michigan Consumer Sentiment Final.
Domestic Update
• Bank Indonesia (BI) reported that Indonesia's International Investment Position (IIP) at the end of 3Q21 recorded a net liability of USD275.9 billion (24.1% of GDP), up from USD264.7 billion (23.9% of GDP) at the end of 2Q21. MNCS Comment: The increase stemmed from a larger increment in the position of Foreign Financial Liabilities (FFL) than Foreign Financial Assets (FFA). Indonesia's FFL position climbed to USD707.8 billion while the FFA at the end of 3Q21 stood at USD415.4 billion.
• Furthermore, the second dose of vaccination rate nationally has reached 51.8% or equivalent to 107.89 million people.
Company News
1. MDKA IJ will conduct a right issue by issuing 1.20 billion shares with a nominal value of IDR2,830/share with the total funds raised through the right issue reaching IDR3.41 trillion. The EGMS is planned to be held on January 27, 2022 (IQPlus). MNCS Comment: Through this right issue, the company plans to fulfill the needs of general liquidity, capital expenditure, and working capital of the company going forward. MDKA is trading at the level of 219.92x/8.36x PER/PBV.
2. UNTR IJ recorded 2,950 units sales of Komatsu heavy equipment as of 11M21 or up +99.19% YoY (vs 1,481 units in 11M20). However, monthly sales of heavy equipment decreased to 360 units in November-21 or down -9.09% MoM (vs 396 units in October-21) (Bisnis Indonesia). MNCS Comment: The sales volume target of Komatsu FY21E set by the company has been achieved around 2,800-3,000 units. We see that UNTR potentially increases sales of Komatsu in the future, which will be driven by increasing economic activity in the mining sector, particularly coal and nickel. Sales to the mining sector dominated 61% of total sales in 11M21. Currently, UNTR is trading at level 7.80x/1.23x PER/PBV.
3. DOID IJ through BUMA Australia Pty. Ltd. officially acquired Downer EDI Mining Pty. Ltd., a mining contractor company in New South Wales, Australia. The transaction value reached USD104.39 million or equivalent to IDR1.5 trillion by a funding loan facility from Bank Mandiri on July-21 (Bisnis Indonesia). MNCS Comment: We see that the success of this transaction signifies BUMA’s entry into the coking coal business, which is going to be the first step for diversification and expansion of the company outside Indonesia. It is hoped that this transaction will be an opportunity to improve the company’s performance in the future. DOID trading at the level of 0.65x PBV.
IHSG Updates
JCI corrected by -0.38% to 6,529.59 on Wednesday (22/12) followed by net foreign sell reaching IDR374.84 billion. JCI closed lower in almost all sectors, led by the transportation sector (-1.39%) followed by the property sector (-0.90%). Meanwhile, the cyclical sector strengthened by +0.80%, followed by the technology sector (+0.20%). JCI was in negative territory until the end of trading accompanied by net foreign sell of -1.36 trillion during the past week. Meanwhile, the health ministry confirmed the addition of domestic Omicron cases to 8 active cases on Wednesday. On the other hand, Rupiah closed higher at IDR14,288/USD level. We estimate that the JCI will move in the range of 6,514-6,600 while waiting for the release of the money supply (M2) YoY data. Today's recommendations: MAPI, TINS, IRRA,CPRO.
Corporate Action
RUPS: PTBA, ANTM, BUKA
Disclaimer On
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