Market Prediction

In yesterday's trading, JCI managed to gain 0.44% at the level of 6,096. Economic data for Indonesia's July inflation was 1.4% higher than the consensus of 1.38% YoY.

Meanwhile, one of the Federal Reserve officials Christopher Waller said that the Fed could start reducing its support for the economy in October. But on condition, if the next two monthly employment reports, each show employment increased by 800,000 to 1 million.

JCI managed to close higher with a bearish candle. The stochastic indicator is weak, MACD histogram is moving positive but down (neutral line) and volume is increasing. If it becomes bearish again, JCI could move back to support levels of 6,029 – 6,048. If JCI is able to move bullish, there is a chance to strengthen again to test resistance level at the range of 6,135 – 6,160.

Commodities Review

• Crude oil prices closed down more than 3% in early trade after weak economic data from China and the United States. On the other hand, higher crude oil production from OPEC triggered fears of weakening oil demand and oversupply. JAKARTA COMPOSITE INDEX

Macro Economic News

• The Caixin China General Manufacturing PMI fell to 50.3 in July 2021 from 51.3 in June, missing market estimates of 51.0.
• Indonesia's annual inflation increased to 1.52 percent in July of 2021 and slightly above forecasts of 1.45 percent, mainly due to a faster rise in prices of food, drinks and tobacco (2.74% vs 1.85%), housing & utilities (0.36% vs 0.30%), transport (0.25% vs 0.09%), amid imposing stricter restrictions in some regions in Indonesia.
• The consumer confidence index in Japan inched up by 1 points from the previous month to 37.5 in July of 2021. It was the strongest reading since February last year.

Corporate news

• PT Allo Bank Indonesia Tbk (BBHI) recorded a net profit of IDR 22.92 billion in June 2021. This value decreased by 30.25% year on year (yoy) compared to June 2020 of IDR 32.86 billion.
• The revenue of PT Lippo Cikarang Tbk (LPCK) was still depressed in the first half of 2021. LPCK recorded a total revenue of IDR 655.1 billion, down 39.79% compared to the same period last year of IDR 1.08 trillion.
• PT Goodyear Indonesia Tbk (GDYR) managed to score a positive performance in the first half of this year. As of June 30, 2021, GDYR's net sales recorded an increase of 67.94% to US$ 76.79 million. Meanwhile, in the same period last year, GDYR's net sales only reached US$ 45.72 million.
• In the second quarter of 2021, PT Gudang Garam Tbk (GGRM) posted a net profit of IDR 564 billion, down 67.7% compared to the first quarter of 2021, and also down 59% compared to the same period the previous year (yoy).

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