Market Prediction

Yesterday's trading, JCI closed higher by 0.40% to 6,555.55. Foreign market players recorded a net sell of IDR 50.10 billion (all markets).

Wall Street's three main indexes managed to close higher as fears the omicron variant could dampen economic growth and President Biden said the US would not return to lockdown.

The market today has a chance to strengthen again and is optimistic that window dressing will occur.

JCI closed higher with a bullish candle. The stochastic golden cross indicator, MACD histogram is moving in a positive direction (the line is weakening) and volume is increasing. If JCI moves bullish, there is a chance to strengthen to the resistance at the range of 6,592 – 6,609. If JCI moves in the bearish candle, it can continue to test support again at the range of 6,480 – 6,494.

Commodities Review

• Oil prices were steady on Thursday (12/23) on signs that the worst effects of the Omicron variant may be more bearable than previously feared.
• Gold prices hovered around the psychological level of USD 1,800 per troi ounce on Thursday (23/12) ahead of the year-end holidays. As the dollar stabilizes and appetite for risk assets improves amid easing concerns over the impact of the Omicron coronavirus variant.

Macro Economic News

• Personal income in the United States increased 0.4 percent from a month earlier in November 2021, following a 0.5 percent growth in October and matching market expectations as most companies increased wages to attract and keep workers and in spite of waning federal stimulus.
• Personal spending in the United States increased 0.6 percent from a month earlier in November of 2021, easing from an upwardly revised 1.4 percent rise in the previous month as holiday shopping started earlier this year in anticipation of product shortages.
• New orders for US manufactured durable goods rose 2.5 percent month-over-month in November of 2021, extending gains from a revised 0.1 percent increase in October and compared to market expectations of a 1.6 percent increase.
• New home sales in the US jumped 12.4 percent month-over-month to a seasonally adjusted annual rate of 744K in November of 2021, following a downwardly revised 662K in October.

Corporate news

• PT Buyung Poetra Sembada Tbk (HOKI) continues to innovate in business by preparing two new products as a step to become a consumer goods company. HOKI's new products that are being prepared are corn rice and cassava rice produced by its new subsidiary, PT Hoki Distribution Niaga (HDN).
• PT Krakatau Steel (Persero) Tbk (KRAS) has confirmed that it will supply 1.5 million tons of steel after signing the Long Term Supply Agreement (LTSA) with its customers. LTSA is a form of competitive marketing strategy and is oriented towards improving service quality and customer satisfaction.
• PT Diamond Food Indonesia (DMND) has acquired 81 percent of the shares of PT Telunjuk Komput Indonesia (TKI). The acquisition was carried out by Diamond Food through its subsidiary, PT Sukanda Djaya.

PT Kiwoom Sekuritas Indonesia (KSI)

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