Market Prediction

In yesterday's trading, JCI closed down 1.41% inline with market concerns over the release of Indonesia's consumer confidence data as of August which fell to the level of 77.3. The restricted mobility of public due to PPKM and the closing of several malls during that period put pressure on people's purchasing power.

As for today, the retail sales data for Indonesia is scheduled to be released for July period.

JCI closed down with a bearish candle. The stochastic indicator is weak, MACD histogram is moving negative (line is weak) and volume is increasing. If JCI is bearish again and breakdown below level 6.021, JCI is expected to move back to support at the range of 5.958 – 5.985. If it is able to move bullishly, there is still a chance for JCI to strengthen again, limited to the resistance at the range of 6.056 – 6.066.

Commodities Review

• Oil prices rose more than 1% on Wednesday (8/9). US Gulf of Mexico producers are making slow progress in restoring oil production after Hurricane Ida.
• Gold prices slipped to a two-week low on Wednesday (8/9). The strengthening United States (US) dollar and higher US Treasury yields outweighed the gleam of bullion from deep concerns about global economic growth.

Macro Economic News

• Indonesia's consumer confidence index dropped 2.9 points to 77.3 in August from 80.2 in the previous month, amid further restrictions to contain the spread of the coronavirus.
• Japan's current account surplus increased to JPY 1,910.8 billion in July 2021 from JPY 1535.3 billion in the same month of the previous year and compared with market expectations of a surplus of JPY 2,300 billion.

Corporate news

• PT Modernland Realty Tbk (MDLN) recorded a positive performance throughout Semester I 2021. MDLN managed to book marketing sales of IDR 821 billion, an increase of 21% compared to the same period in 2020.
• PT Darma Henwa (DEWA) pocketed a contract for the construction of a North Bengalon coal haul road of IDR 52 billion. The contract was obtained from PT Kaltim Prima Coal (KPC). This road is a KPC mining area.
• PT Adi Sarana Armada Tbk (ASSA) has started to boost other business lines besides the logistics business line, which has become the main revenue contributor. Throughout the first semester of 2021, ASSA's automotive auction business through its subsidiary PT JBA Indonesia (JBA) managed to record a growth of 13 percent for car auctions, reaching 21,000 units compared to the same period a year earlier.

PT Kiwoom Sekuritas Indonesia (KSI)

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