Market Prediction
Today, JCI is expected to be prone to correction.
Last Friday, Wall Street stock market managed to strengthen on the back of optimism over the amount of US stimulus with a major impact on the global economy.
JCI closed higher again with a bullish candle after touching the support trendline. The stochastic golden cross indicator, MACD histogram is negative (line is weakening) and volume is down. JCI has the potential to strengthen again to test the resistance levels at the range of 6,239 - 6,252. We recommend to be careful if the movement tends to form a bearish candle, the index could return to the support levels at the range of 6,239 - 6,252.
Commodities Review
• Oil prices soared more than 4% in weekend trading on worries that global supplies of crude and refined products could be disrupted for weeks by a giant container ship blocking a passage on the Suez Canal. This gain is a rebound from sharp losses in the previous session amid concerns that the lockdown of the new coronavirus in Europe will disrupt fuel demand.
• Gold prices closed slightly higher in trading this weekend. However, the strengthening of US dollar (US) and the increase in yields US Treasuryput precious metals commodities on the path of the first weekly decline in three weeks.
Macro Economic News
• Personal spending in the United States declined 1.0 percent from a month earlier in February 2021, following an upwardly revised 3.4 percent growth in January and compared with market consensus of a 0.7 percent drop.
• Personal income in the US declined 7.1 percent month-over-month in February of 2021, down from an upwardly revised 10.1 percent jump in January and compared to market expectations of a 7.3 percent drop. It is the biggest fall on record reflecting a decrease in government social benefits to persons.
• The Composite Consumer Sentiment Index (CCSI) in South Korea increased to 100.5 points in March 2021 from 97.4 in the previous month.
Corporate news
• PT Djasa Ubersakti Tbk (PTDU) pocketed a net profit of Rp 2.97 billion in 2020. This net profit slightly decreased by 1.98% from 2019.
• PT United Tractors Tbk (UNTR) reported the sales volume of Komatsu heavy equipment in February 2021 as much as 201 units. This number decreased by 6.5% from sales in January 2021, which was 215 units. On abasis year-on-year, sales in February 2021 also decreased by 7% from sales in the same period the previous year which reached 216 units.
• PT Fajar Surya Wisesa Tbk (FASW) throughout 2020 posted a net profit of IDR 353.29 billion, declined by 63.53 percent compared to a net profit of IDR 968.8 billion in 2019.
• PT Wijaya Karya (Persero) Tbk. (WIKA) posted a net income of IDR 16.53 trillion, down 39.25 percent compared to 2019 revenue of IDR 27.21 trillion.
PT Kiwoom Sekuritas Indonesia (KSI)
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