Market Prediction

Yesterday's trading, JCI closed higher by 0.61% to a level of 6,643.93. Foreign market players recorded a net buy of IDR 2.52 trillion (all markets), IDR 2.69 trillion (NG+TN).

Wall Street's major indexes ended in the negative zone. The weakness was due to the market trying to assess what the impact of the new coronavirus variant on the economic recovery would be. Then the market is also focused on US inflation data which is likely to show inflationary pressures persist, strengthening the case for the Fed to double its taper pace next week.

Today's market is expected to weaken in anticipation of profit taking and external market conditions ending in the negative zone.

JCI closed higher with a bullish candle. The stochastic indicator is bullish, MACD histogram is moving in a positive direction (potential golden cross line) and volume is increasing. If JCI moves bullish again, there is a chance to strengthen again to the resistance at the range of 6,679 – 6,691. If JCI moves in a bearish candle, the movement can return to support at the range of 6,602 – 6,617.

Commodities Review

• Higher Saudi prices for January, lower overall demand for crude amid the Omicron uncertainty, the Chinese crackdown on illicit practices at its independent refiners, and refinery maintenance season starting in late Q1 2022 have resulted in Asian refiners abstaining from extra Saudi crude supply for loading in January.

Macro Economic News

• China's consumer price inflation accelerated to 2.3 percent in November 2021 from 1.5 percent a month earlier and compared with market consensus of 2.5 percent.
• The number of Americans filing new claims for unemployment benefits dropped by 43 thousand from the previous period to 184 thousand in the week ending December 4th, the lowest level since early September 1969 and below market expectations of 215 thousand, as demand for labor remains strong amid the ongoing economic recovery and as many employers seek to retain workers.

Corporate news

• PT Enseval Putera Megatrading Tbk (EPMT) until the third quarter of 2021 managed to record a positive performance. Sales were recorded at IDR 18.81 trillion, an 11.5% growth compared to the same period last year of IDR 16.86 trillion.
• PT PP London Sumatra Indonesia Tbk (LSIP) managed to record a solid performance until the third quarter of 2021. LSIP's revenue until the end of the third quarter of 2021 reached IDR 3.3 trillion, up 46.6% year on year (yoy). Meanwhile, net profit rose 171.5% yoy to IDR 752 billion.
• PT Jaya Swarasa Agung Tbk (TAYS) targets a revenue of IDR 338 billion by the end of 2021 with a net profit margin of above 6%. The target is an increase of 10% compared to the realization of revenue in 2020 which amounted to IDR 308.23 billion.
• A subsidiary of PT Avia Avian Tbk (AVIA), PT Tirtakencana Tatawarna, increased its authorized, issued and paid up capital of 2.83 million shares worth IDR 1.41 trillion.

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