Market Prediction

In yesterday's trading, JCI closed rebound from its decline by closing positive at 0.01%. Meanwhile, from Wall Street stock market, all three indexes closed lower as investors reconsidered the rising inflation data in US, this may force The Federal Reserve to reduce its stimulus to prevent an overheating economy.

Apart from that, market players will also be looking forward to release of the minutes from The Fed this Wednesday.

JCI closed slightly higher, after dropping to the level of 5,782. The stochastic indicator is weakening, MACD histogram is negative (line is weakening) and volume is increasing. If JCI is able to move bullish there is a potential to strengthen up to the resistance levels of 5,883 - 5,892. If JCI moves bearish, it can continue to fall back to support I at 5,781 & II at 5,735 (strong support).

Commodities Review

• Oil prices fell 1% on Tuesday (18/5), falling from two-month highs. After media reports said United States and Iran had made progress in reviving a deal that limited Iran's development of nuclear weapons, which could release more barrels onto the market.
• Gold prices hit a nearly four-month high on Tuesday (19/5) before dropping slightly. This was triggered by rising yields on US Treasuries with a weaker dollar.

Macro Economic News

• The Japanese economy shrank 1.3% on quarter in Q1 2021, compared with market estimates of a 1.2% fall and after a 2.8% growth in the previous period, a preliminary reading showed.
• The number of people claiming unemployment benefits in the UK declined by 15.1 thousand to 2.6 million in April of 2021, following a revised 19.4 thousand fall in March, as the government's wage-subsidy scheme continued to support the labor market.

Corporate news

• PT Diagnos Laboratorium Utama Tbk (DGNS) announced the results of the first quarter financial statements ending on March 31, 2021. Diagnos Laboratorium Utama managed to score a fantastic net profit growth of 1,287.42% compared to the same quarter in 2020.
• PT Bumi Resources Tbk (BUMI) recorded a loss of US$ 338.02 million over the past year. In fact, the company was still able to record a net profit of US$ 6.84 million in 2019.
• PT Catur Sentosa Adiprana Tbk (CSAP) until the end of 2020 recorded a net profit of IDR 60,477 billion or a 0.5 percent decrease compared to the end of 2019 of IDR 60,833 billion.
• PT Weha Transportasi (WEHA) throughout 2020 must be willing to bear a loss of IDR 33.55 billion. This result is inversely proportional to the same period in 2019 with a net profit collection of IDR 3.90 billion.

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