Market Prediction

Yesterday's trading, JCI closed up 0.19% to 6,575.44. Foreign players recorded a net purchase of Rp 364.9 billion (all markets).

Wall Street's third major index closed higher again. Strengthening because the market remains optimistic that the outbreak of a new variant will not derail economic growth.

The market today has a chance to continue strengthening to the nearest resistance in the hope of a year-end window dressing.

JCI closed higher with a bullish candle. The stochastic indicator is bullish, MACD histogram is moving in a positive direction (sloping line) and volume is increasing. If JCI moves bullish, there is a chance to strengthen to the resistance at 6,609, if it breaks up from that, it can further go up to 6,632. If JCI moves bearish candle, it can continue to test support at the range of 6,533 – 6,554.

Commodities Review

• Gold prices hit their highest level in more than a week in trading earlier this week. The main sentiment came from the new risks to global economic growth due to the increase in cases of the Omicron variant of the corona virus which offset the pressure from the strengthening of the United States (US) dollar.
• Oil prices jumped more than 2% in early-week trade to their highest since late November 2021. The support came in hopes that the Omicron variant of the coronavirus will have a limited impact on global demand in 2022, even as soaring cases led to the cancellation of some flights.

Macro Economic News

• Retail sales in Japan increased 1.9% YoY in November 2021, rising for the second month in a row and beating market expectations for a 1.7% increase.
• The Federal Reserve Bank of Dallas' general business activity index for manufacturing in Texas fell to +8.1 in December 2021 from +11.8 in the previous month, still pointing to improving perceptions of broader business conditions.

Corporate news

• PT Bumi Serpong Damai Tbk (BSDE) managed to record a solid performance in the third quarter of 2021. Meanwhile, BSDE's financial performance until the first semester of 2021 was positive with pre-sales reaching IDR 4.5 trillion. This figure rose 39.20% year on year (yoy). The residential segment contributed 67% of the total pre-sales.
• PT Garudafood Putra Putri Jaya Tbk (GOOD) sees that the food and beverage industry trend has improved since the third quarter of 2021. This condition makes net profit also grow by 87.65 percent or IDR 370 billion from last year's period.
• PT Bukaka Teknik Utama Tbk (BUKK) increased its investment in PT Malea Energy, which is an affiliate of BUKK. This investment is carried out through the acquisition of new shares to be issued by Malea Energy with a value of IDR 150 billion or equivalent to 4.78% of BUKK's equity.
• PT Summarecon Agung Tbk (SMRA) continued its positive performance this year. Until the end of November 2021, SMRA’s marketing sales reached IDR 4.8 trillion. This figure is far above Summarecon Agung's target of only IDR 4 trillion.

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