Market Prediction

Indonesian government is currently starting to be wary of implementing emergency PPKM if the infection rate cannot be controlled by the end of July. This is estimated to be able to suppress the Indonesian economy in the third quarter.

In addition, an increase in the price of crude oil commodities is also a negative sentiment for the economy considering that Indonesia is still a net importer of crude oil.

JCI closed down with a bearish candle. The stochastic indicator is neutral, MACD histogram is moving in a positive direction (the line is weak) and volume is falling. If JCI moves bullish again, there is a chance for JCI to strengthen the resistance at the range of 6,036 – 6,043. If the movement tends to be bearish, JCI could drop to support at 5,985 & support II at 5,969.

Commodities Review

• Crude oil prices rose in early trade after OPEC+ canceled talks on production levels, meaning no deal to increase output had been agreed.

Macro Economic News

• The Caixin China General Services PMI fell to a 14-month low of 50.3 in June 2021 from 55.1 in the prior month, amid an outbreak of a more infectious Delta variant of COVID-19 in Guangdong and the subsequent imposition of anti-virus measures.
• Foreign Exchange Reserves in South Korea decreased to 454110 USD Million in June from 456460 USD Million in May of 2021.

Corporate news

• PT Darma Henwa Tbk (DEWA) recorded net profit growth in the first quarter of this year. DEWA recorded a net profit of US$ 0.88 million or grew 26.9% compared to the first quarter of the previous year of US$ 0.69 million.
• A subsidiary of PT Delta Dunia Makmur Tbk (DOID), namely PT Bukit Makmur Mandiri Utama (Buma) obtained a loan facility worth US$ 350 million from PT Bank Mandiri (Persero) Tbk (BMRI).
• PT Gajah Tunggal Tbk (GJTL) recorded net sales which grew slightly by 3.16% from the same period the previous year. GJTL posted net sales of IDR 3.92 trillion as of the end of March. Whereas in the previous year, GJTL still earned net sales of up to IDR 3.79 trillion.
• Based on its annual financial report ending March 31, 2021, PT Hexindo Adiperkasa Tbk (HEXA) recorded revenues of US$ 264.01 million, down 37.79 percent compared to the previous year's period of US$ 424.43 million.

PT Kiwoom Sekuritas Indonesia (KSI)

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