Market Prediction

Yesterday's trading, JCI closed down by 0.47% to level of 6,594.80. Foreign market players recorded a net sell of IDR 733.94 billion (all markets).

Wall Street's three major indexes were lower, Nasdaq fell the deepest (-2.47%). The decline was due to a decline in stocks in the technology sector. On the other hand, the BoE unexpectedly raised the bank's interest rate to 0.25% from 0.1%.

Today's market will likely move down to the nearest support and after that there is a chance for a technical rebound.

JCI closed down with a bearish candle. The stochastic indicator is bearish, MACD histogram is moving negative (line is weak) and volume is increasing slightly. If JCI moves to a bearish candle, the movement could return to the support at 6,565, if it breaks down from that level, it can further go down to 6,552. If JCI moves bullish again, there is a chance to strengthen again to the resistance at the range of 6,632 – 6,552.

Commodities Review

• Gold prices rose as the dollar weakened after the Federal Reserve decided to end its pandemic-era bond purchases in March 2022. Investors are now waiting for policy decisions from other major central banks.

Macro Economic News

• The value of loans in Indonesia increased 4.73 percent in November of 2021 over the same month in the previous year
• Japan registered a trade deficit of JPY 954.8 billion in November 2021, compared with market consensus of a JPY 675 billion gap and shifting from a surplus of JPY 325.91 billion in the same month a year earlier.
• The IHS Markit Manufacturing PMI for the US fell to 57.8 in December of 2021 from 58.3 in November and below market forecasts of 58.5, preliminary estimates showed.
• Housing starts in the US surged 11.8 percent to an annualized rate of 1.679 million in November 2021, the highest level since March and well above market consensus of 1.568 million.

Corporate news

• PT Matahari Department Store Tbk (LPPF) is expanding its business by opening two (2) new Matahari stores in Cianjur, Batam and surrounding areas this month.
• PT Berlina (BRNA) received a loan facility of IDR 53 billion. The loan was obtained from the main shareholder, PT Dwi Satrya Utama (DSU). The funds are also for a subsidiary of PT Lamipak Primula Indonesia (LPI).
• PT Adaro Energy Tbk (ADRO) bought up 145.6 million shares of PT Cita Mineral Investindo Tbk (CITA) as an investment step into the metal mineral mining sector.

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