Market Prediction

In yesterday's trading, JCI managed to close up 0.64% at the level of 5,797. JCI's rebound was partly due to the release of Balance of Trade data with a surplus above the forecast of $ 2.19 Bn, this figure was supported by the high increase in the value of exports which grew above 50% for April YoY period. The increase in export value was supported by high demand for mining commodities.

Meanwhile, Wall Street stock market closed higher overnight after the release of jobless claims data for the period to May 15, the number of jobless claims fell even lower than economists forecast. It also marked a second straight weekly decline and was the lowest level since the coronavirus pandemic hit U.S. economy.

JCI closed higher at 5,797. The stochastic indicator has the opportunity for a golden cross, MACD histogram is negative (line is weakening) and volume declines again. If JCI moves bearish again, it could fall back to support at 5,751, if it breakdown below that level, JCI may go down to level of 5,735. If JCI is bullish, the nearest it will test level of 5,814. If it manages to break up above level 5,814, it can continue to the resistance levels of 5,828 - 5,853. Be careful if after testing level 5,814, JCI can't stay above it and turn into a bearish candle.

Commodities Review

• Oil prices fell more than 2% and are on track for a third day of decline on Thursday (20/5). After diplomats said progress had been made towards a deal to lift sanctions against Iran, which could increase crude supplies.
• Gold prices hovered near their highest level in more than four months in the previous session on Thursday trading (20/5), driven by the decline in the US dollar (US) and US Treasury yields.

Macro Economic News

• The People's Bank of China (PBoC) left its benchmark interest rates for corporate and household loans steady for the 13th straight month at its May fixing, as the economy continues to recover from the downturn caused by the COVID-19 shocks.
• Indonesia posted a trade surplus of USD 2.19 billion in April of 2021, shifting from a deficit of USD 0.37 billion in the same month of the previous year and far above market consensus of USD 1 billion.
• Japan posted a trade surplus of JPY 255.3 billion in April 2021, reversing from a deficit of JPY 936.9 billion in the same month a year earlier and well above market consensus of a surplus of JPY 140 billion.

Corporate news

• PT Armada Berjaya Trans Tbk (JAYA) will open a subsidiary in the property sector. JAYA's management explained that the new subsidiary will purchase assets in the form of a villa commercial located in Bali.
• PT Mulia Boga Raya Tbk (KEJU) recorded a net profit growth throughout 2020. Last year, KEJU posted a net profit of IDR 121 billion. This net profit increased by 23.41% compared to 2019, which amounted to Rp. 98.04 billion.
• In the first quarter of 2021, PT Indosat Tbk (ISAT) posted an increase in total revenue of 12.6% to Rp 7.35 trillion, from Rp 6.52 trillion in the same period in 2020.
• PT Zyrexindo Mandiri Buana Tbk (ZYRX) recorded performance good throughout the past year. ZYRX posted a net profit of Rp. 36.37 billion, up 341.57% from the previous year's profit which was only Rp. 8.24 billion.

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