Market Prediction

Wall Street stocks closed mostly lower overnight as investors took a cautious approach to falling 10Yr yields to their lowest level since Feb 24. Data showed US service industry activity grew at a moderate pace in June, possibly held back by shortages of labor and raw materials.

On Tuesday, the Volatility Index rose 1.37 points to close at 16.44, its highest close in two weeks, indicating increasing for investor's worriness.

On the other hand, today is scheduled to release data on Indonesia's foreign direct investment in June.

JCI closed higher with a bullish candle. The stochastic indicator is bullish, MACD histogram is moving in a positive direction (line is weak) and volume is increasing. If JCI is able to hold on at level 6,043 and moves bullish again, there is a chance for JCI to strengthen the resistance at the range of 6,067 – 6,079. If the movement tends to be bearish, JCI could drop to support at 6,013 & support II at 6,005.

Commodities Review

• The price of gold was increased and had been above US$ 1,800 per ounce after the yield on the bonds of the United States (US) fell. Investors are still waiting for the release of the minutes from the last Federal Reserve policy meeting to gauge monetary policy next.
• Oil prices fell after OPEC+ canceled a meeting when major producers were unable to reach an agreement to increase supply.

Macro Economic News

• The IHS Markit US Services PMI was revised slightly lower to 64.6 in June 2021, from a preliminary estimate of 64.8 and compared with the previous month's all-time high of 70.4.
• The IHS Markit/CIPS UK Construction PMI rose to 66.3 in June 2021, signaling the strongest rate of output growth since June 1997 following the reopening of the UK economy.

Corporate news

• PT Hotel Fitra International Tbk (FITT) posted an unsatisfactory performance in the first quarter of this year. FITT's revenue fell 15.61% to IDR 1.57 billion at the end of March 2021. Even though in the same period last year, the company still pocketed IDR 1.84 billion in revenue.
• PT Dian Swastatica Sentosa Tbk (DSSA) during the first quarter of 2020 managed to record a positive performance, as seen from the net profit attributable to owners of the parent entity of US$ 62.59 million, up 389.29 percent from the profit for the same period the previous year which was only US$ 12.79 million.
• Until the end of the second quarter of 2021, PT PP Presisi Tbk (PPRE) won new contracts reaching IDR 2.8 trillion, equivalent to 76% of the total new contract target until the end of 2021, which is IDR 3.7 trillion.
• PT Djasa Ubersakti Tbk (PTDU) managed to grow new contracts in the first semester of 2021. PTDU managed to pocket a new contract of IDR 126.69 billion in the first semester. This achievement grew by around 163% compared to the same period in 2020.

PT Kiwoom Sekuritas Indonesia (KSI)

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