Market Prediction

Yesterday's trading, JCI closed down 0.40% to 6,507.68. Foreign market players recorded a net sell again of IDR 621.65 billion (all markets).

Wall Street's main indexes resumed their decline after CDC confirmed the first US case of Omicron. Later, investors also weighed positive data on US private employment and factory activity and a hawkish statement by the Federal Reserve Chair.

Today's market is expected to continue weakening towards our support.

JCI closed down with a bearish candle. The stochastic indicator weakened again, MACD histogram is moving negative (bearish line) and volume is down. If JCI breaks down to 6,480, it can continue to support at 6,460. If it breaks down from that level again, JCI will be in the downtrend to the gap area of 6,416 – 6,436. If JCI moves bullish again, there is a chance to strengthen again to the resistance at the range of 6,544 – 6,550.

Commodities Review

• Oil prices fell into the red zone on Wednesday (1/12). After the CDC confirmed the case of Omicron United States (US).
• Gold prices rose on Wednesday (1/12), following the weakening of the United States (US) dollar. Investors used the pullback in the previous session to buy bullion as a hedge against market volatility amid concerns over the impact of the Omicron coronavirus variant.

Macro Economic News

• The Caixin China General Manufacturing PMI fell to 49.9 in November 2021 from 50.6 in the prior month, missing market forecasts of 50.5.
• Indonesia's annual inflation edged up to a 17-month high of 1.75 percent in November of 2021, from 1.66 percent in the previous month, amid easing COVID-19 restrictions.
• Private businesses in the United States hired 534 thousand workers in November 2021, compared with a downwardly revised 570 thousand increase in October and beating market expectations of a 525 thousand rise, as the labor market continued to show signs of a solid recovery amid the ongoing economic rebound.
• The ISM Manufacturing PMI in the United States edged up to 61.1 in November 2021, from 60.8 in the previous month and broadly in line with market consensus of 61.0.

Corporate news

• PT Royal Prima Tbk (PRIM) managed to reap a net profit of IDR 105.46 billion in the first nine months of 2021, or an increase of 517.64 percent compared to the same period in 2020 which was only recorded at IDR 17.721 billion.
• PT Global Mediacom Tbk (BMTR) during the first nine months of 2021 posted a net profit attributable to owners of the parent entity of IDR 970.42 billion, an increase of 29.85 percent compared to the same period in 2020 of IDR 747.32 billion.
• PT Salim Ivomas Pratama Tbk (SIMP) until the third quarter of 2021, managed to record a profit for the period attributable to the owners of the parent entity turning into a profit of IDR 563 billion from a loss of IDR 173 billion in the same period the previous year.
• PT Adaro Energy (ADRO) during the first nine months of 2021 recorded revenues of USD 2.56 billion. Up 31 percent from the same period last year USD 1.95 billion.

PT Kiwoom Sekuritas Indonesia (KSI)

Treasury Tower 27th Floor Unit A, District 8 Kawasan SCBD Lot 28

Jl.Jend.Sudirman Kav 52-53, Jakarta Selatan 12190

Telp : +62 21 5010 5800

Fax. +62 21 5010 5820

Website : www.kiwoom.co.id