Market Prediction

On Monday, JCI closed down 0.91% but remained at the level of 6,000s. The index weakening on Monday was carried out in anticipation of the PPKM, while on Tuesday the Government officially extended the Emergency PPKM until July 25 due to the high infection rate.

Thus, economic activity will be loosen on July 26, 2021 if the average daily addition of Covid-19 positive cases are decreasing.

Meanwhile, Bank Indonesia Board of Governors meeting is scheduled to announce the benchmark interest rate tomorrow.

JCI closed down with a bearish candle. The stochastic indicator is moving lower, MACD histogram is moving negative (line is weak again) and volume is falling. JCI is expected to fall back to the nearest support at the range of 5,969 – 5,982. The resistance levels at the range of 6,046 – 6,051.

Commodities Review

• Crude oil futures prices rebounded at the close of trading Tuesday (20/7/2021), as market participants raced to take advantage of prices that had been discounted to a two-month low touched in the previous session.

Macro Economic News

• Japan's consumer prices rose by 0.2% yoy in June 2021, after a 0.1% drop in the previous month. This was the first consumer price inflation since August 2020, as consumption recovered following an acceleration in COVID-19 vaccinations.
• The People's Bank of China (PBoC) left its benchmark interest rates for corporate and household loans steady for the 15th straight month at its July fixing, despite growing expectations for a cut after the central bank lowered the reserve requirement ratio by 50 basis points, which took effective starting from July 15th, releasing around CNY 1 trillion to support the economic recovery.

Corporate news

• PT Krakatau Steel Tbk (KRAS) continued to record positive performance in semester I-2021. This can be seen from the net profit in the first half of this year of IDR 475 billion, which jumped 601.3% compared to net profit in the same period in 2020 which was only IDR 67 billion.
• PT Arwana Citra Mulia Tbk (ARNA) until the second quarter of 2021 achieved an increase in profit by 83.71 percent to IDR 220.91 billion from a profit of IDR 120.63 billion in the same period the previous year.
• At the beginning of the third quarter of 2021, PT PP Presisi Tbk (PPRE) was appointed as a hauling contractor in the Weda Bay Nickel Mine Transportation Service Project with an estimated work value of more than USD 21 million. With the new contract, PPRE has recorded an achievement of up to IDR 3.1 trillion or 84% of the total target of IDR 3.7 trillion by the end of 2021.
• Moody's has lowered the debt rating of PT Agung Podomoro Land (APLN) to Caa1 with a negative outlook.

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