Market Prediction

Yesterday's trading, JCI closed up 0.36% to 6,675.80. Foreign market players recorded a net sell again of IDR 824.89 billion (all markets).

Wall Street's all three main indexes closed lower again. The index's weakness due to inflation concerns outweighed the optimistic on earnings report.

Today's market focus will be on interest rates, which are expected to remain constant, and then looking at the direction of policies taken to anticipate external sentiment in order to support economic stability.

JCI closed higher with a bullish candle. The stochastic indicator has a golden cross, MACD histogram is moving in a positive direction (sloping line) and volume is increasing. If JCI moves bullish again, there is a chance to further strengthen to resistance levels at 6,694 – 6,714. If JCI moves bearish, it can first go down to support at the range of 6,637 – 6,654. 

Commodities Review

• Oil prices fell to their lowest closing level since early October, after OPEC and the International Energy Agency (IEA) warned of an impending supply glut and rising Covid-19 cases in Europe increasing the risk of a slowdown in demand recovery. 

Macro Economic News

• Japan unexpectedly registered a trade deficit of JPY 67.37 billion in October 2021, missing market consensus of a surplus of JPY 310.0 billion and shifting from a surplus of JPY 840.79 billion in the same month a year earlier.
• Annual inflation rate in the UK jumped to 4.2% in October of 2021, the highest since December of 2011 and above market forecasts of 3.9%.
• Housing starts in the US unexpectedly fell 0.7% mom to an annualized rate of 1.52 million in October of 2021 from a downwardly revised 1.53 million in September and well below forecasts of 1.576 million.
• Building permits in the United States rose 4 percent from a month earlier to a seasonally adjusted annual rate of 1.650 million in October of 2021, above market expectations of 1.638 million.

Corporate news

• PT Pakuwon Jati Tbk (PWON) posted a revenue increase of 24.34% year on year (yoy) during the first nine months of 2021. Thus, PWON's revenue grew from IDR 3.05 trillion as of September 2020 to IDR 3.79 trillion as of September 2021.
• PT Galva Technologies Ltd (GLVA) posted a sales of IDR 1.1 trillion as of September 2021. It was down 27% compared to the same period in September 2020 which amounted to IDR 1.5 trillion.
• PT Indah Kiat Pulp and Paper Tbk (INKP) until the third quarter of 2021 recorded a 14.37% increase in net sales year on year (yoy) to USD 2.50 billion. In the same period the previous year, INKP posted net sales of USD 2.19 billion.
• PT Golden Energy Mines Tbk (GEMS) recorded consolidated revenues of USD 1.05 billion in JanuarySeptember 2021, up 34.92% compared to the realization of the same period in 2020 which amounted to USD 783.86 million. 

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