Market Prediction

Yesterday's trading, JCI closed higher by 0.38% to the level of 6,529.59. Foreign market players recorded a net sell of IDR 374.84 billion (all markets).

Wall Street's three main indexes closed higher again, supported by upbeat economic data. The updated figures show the US economy expanded 2.3% YoY in Q3, above the second forecast of 2.1% and consumer confidence improved more than expected.

Today the market from technical side is able to test the nearest support and if it holds there is a chance for a rebound. Then today from domestic there will be the release of November’s M2 money supply which the market can observe.

JCI closed down with a bearish candle. The bearish stochastic indicator is approaching the oversold area, MACD histogram is moving negative (line is weak) and volume is neutral. If JCI moves bearish candle, it can continue to test support again at the range of 6,480 – 6,494. If JCI moves bullish, there is a chance to strengthen to the resistance at the range of 6,559 – 6,579.

Commodities Review

• Oil prices rose on Wednesday amid fears of tight supplies and a draw in United States (US) inventories. Despite concerns about the possible hit to economic activity from the spread of the Omicron coronavirus variant.
• Gold prices rose on Wednesday, helped by the dollar's decline and lingering concerns that the Omicron coronavirus variant could undermine the global economic recovery.

Macro Economic News

• The current account deficit in the UK widened sharply to GBP 24.4 billion or 4.2% of the GDP in the third quarter of 2021 from an upwardly revised GBP 13.5 billion in the previous period and compared to market forecasts of GBP 15.6 billion.
• The US economy grew by an annualized 2.3% on quarter in Q3 2021, slightly higher than 2.1% in the second estimate and following a 6.7% expansion in the previous three-month period.

Corporate news

• PT Totalindo Eka Persada Tbk (TOPS) recorded a positive performance throughout the third quarter of 2020 which posted a net profit of IDR 718.07 million. Whereas in the same period last year the company recorded a net loss of IDR 68.37 million.
• PT Capitol Nusantara Indonesia Tbk (CANI) has succeeded in improving its performance in the midst of many challenges, one of which is the Covid-19 pandemic. The increase in revenue in 2020-2021 was USD 1 million or an increase of around 60.7% from the previous year.
• PT Kobexindo Tractors Tbk (KOBX) said that it received an additional non-cash loan for the issuance of a Letter of Credit (L/C) from PT Bank Central Asia Tbk (BBCA) worth USD 60 million. The loan is to meet the surge in orders for mining and non-mining heavy equipment for 2022.
• PT Impack Pratama Industri Tbk (IMPC) provided a loan of IDR 150 billion to PT Mulford Indonesia. Mulford Indonesia is a subsidiary of IMPC, where as much as 99% of its shares are held by the listed plastic goods manufacturers and distributors.

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