Market Prediction

Last week, JCI managed to close down -0.79% to the level of 6,591. The strengthening on Friday was due to sentiment from US CDC which determined Indonesia to be level 1 for COVID-19.

The IHS Markit Indonesia Manufacturing PMI jumped to a fresh record peak of 57.2 in October 2021 from 52.2 a month earlier, boosted by an improvement in the domestic COVID-19 situation and further easing of restrictions. Today, there will be the release of inflation data which is expected to increase either yoy or mom.

This week, the market will focus on the Fed, which is widely expected to announce that it will start reducing its $120 billion monthly bond purchases on Wednesday, but investors are looking forward to the central bank's decision on the timing for US rate hike.

JCI closed higher with a bullish candle and returned above the level of 6,585. The stochastic indicator has the potential to return to a golden cross, the MACD histogram is moving negative (line is weak) and volume is increasing. If JCI doesn't move below level 6,585 again or moves bullish again, it could move higher at the resistance at the range of 6,625 – 6,638. If JCI moves bearish again and goes down below level 6,585, it could further decline to the support at the range of 6,536 – 6,552. 

Commodities Review

• Crude oil prices closed higher on Friday (29/10), reversing from the weakness in early trading. The gains were supported by expectations that the Organization of the Petroleum Exporting Countries, Russia and their allies, known as OPEC+, would maintain production cuts.

Macro Economic News

• Inflation Rate In the Euro Area increased to 4.10 percent in October from 3.40 percent in September of 2021.
• The consumer confidence index in Japan was up 1.4 points from the previous month to 39.2 in October of 2021. It was the strongest reading since May 2019, as main sub-indices of income growth (up 1.0 points to 39.1) and employment perceptions (up 4.9 points to 41.0) improved.

Corporate news

• PT Dyandra Media International Tbk (DYAN) posted a net income of IDR 227 billion as of September 2021. The revenue grew 39% year on year (yoy) compared to the same period in 2020 which amounted to IDR 163 billion.
• PT Austindo Nusantara Jaya Tbk (ANJT) posted a positive performance until September 2021. The net profit of ANJT rose 1.636% on an annual basis (yoy) to US$ 26.04 million in the third quarter of 2021.
• PT Triputra Agro Persada Tbk (TAPG) recorded a net profit of IDR 736 billion in the third quarter of 2021. This figure increased by 201% compared to the same period in 2020, which was IDR 244 billion.
• PT Bank Maybank Indonesia Tbk (BNII) recorded a consolidated profit before tax (PBT) of IDR 1.48 trillion. This value increased by 2.1% year on year (yoy) worth IDR 1.45 trillion.

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