DAILY UPDATE September 12, 2023
MACROECONOMIC NEWS
Euro Zone Economy - The European Commission on Monday cut its forecasts for the Italian economy this year and next, following a slew of weak data which limits Prime Minister Giorgia Meloni's scope to enact promised tax cuts in the 2024 budget. Brussels said the country's GDP was expected to grow by 0.9% this year and 0.8% in 2024, marking a downward revision of 0.3 percentage points for each year.
Russia Economy - Annual inflation in Russia was 5.15% in August, up from 4.30% in July, according to Russia's statistics service.
CORPORATE NEWS
AEGS - PT Anugerah Spareparts Sejahtera targets a 66% YoY increase in net profit to IDR 1.37 billion. To support this goal, the manufacturer of oil, air, petrol, and motor vehicle cabin filters under the Aegis brand will expand its marketing efforts in the Asian region.
ARNA - PT Arwana Citramulia plans to carry out an IDR 150 billion buyback of the company's shares. This is being done to maintain the fairness of the company's share price by considering the historical price-earnings ratio (PER) for the last 10 years.
DRMA - PT Dharma Polimetal is optimistic that demand for components will increase along with the rising sales of electric vehicles. Fitch Ratings also estimates a 5% increase in EV sales, targeting 50,000 units by the end of 2023. This projection represents a significant increase compared to 2022 when EVs comprised only 2% of total car sales. DRMA plans to expand its operations to develop battery packs and battery management systems for two-wheeled electric vehicles. Additionally, they will invest in new machinery and engineering.
WSKT - PT Waskita Karya has recorded IDR 11.2 trillion in new contract value (NCV) as of August 2023. Overall, WSKT is currently working on 93 projects worth IDR 51.6 trillion, with 46%
of them being government projects and 32% from SOE. These projects generate monthly payments, which are designed to enhance liquidity in the company's cash flow.
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Commodities
Last Price Chg %Chg
Oil NYMEX 87.3 0.4 0.5
Oil Brent 90.6 0.3 0.4
Coal Newcastle 158.0 1.8 1.1
Nickel 20485 433.0 2.2
Tin 25803 230.0 0.9
Gold 1921 -1.0 -0.1
CPO Rott 960 -8.8 -0.9
CPO Malay 3760 -70.0 -1.8
Indo Gov. Bond ields
Last Yield Chg %Chg 1 year 6.345 -0.01 -0.20 3 year 6.301 0.00 -0.05 5 year 6.294 0.01 0.08 10 year 6.608 0.01 0.08 15 year 6.695 0.00 0.05 30 year 6.845 0.00 0.02
Currency
Closing Last Trade
US$ - IDR 15,330 15,330
US$ - Yen 146.59 146.59
Euro - US$ 1.0750 1.0742
US$ - SG$ 1.361 1.361
Equity Markets
Closing % Change
Dow Jones 34,664 0.25
NASDAQ 13,918 1.14
S&P 500 4,487 0.67
MSCI excl. Jap 621 0.14
Nikkei 32,532 0.20
Shanghai Comp 3,143 0.84
Hang Seng 18,096 -0.58
STI 3,211 -0.24
JCI 6,963 0.56
Indo ETF (IDX) 18 0.90
Indo ETF (EIDO) 23 1.01
PGEO - PT Pertamina Geothermal is reportedly seeking a bank loan of USD 1.5 billion (IDR 23 trillion), and its management hopes to complete this loan process by the end of this month. The company also aims to secure bank loans with an interest rate of less than 100 basis points, based on the Secured Overnight Financing Rate (SOFR). Currently, PGEO already has an installed geothermal capacity of 672 megawatts and intends to increase it to 1 gigawatt within the next two years.
TOBA - PT TBS Energi Utama acquired a medical waste management company in Singapore, Asia Medical Enviro Services Pte. Ltd (AMES), worth SGD 60 million (IDR 676.14 billion). To fund this corporate action, the company secured approximately USD 33 million as a 5-year term loan through green financing, with USD 19.25 million from PT Bank Mandiri Tbk (BMRI) Singapore branch and USD 14.21 million from DBS Bank Ltd. TOBA's acquisition strategy for AMES is expected to contribute around SGD 13-15 million annually to TOBA's revenue and SGD 8-10 million annually to its EBITDA.
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