Market Prediction

Yesterday's trading, JCI closed higher by 0.03% to 6,600.68. Foreign market players recorded a net sell of IDR 98.7 billion (all markets).

Wall Street's main indexes closed mixed (DJI +0.25%, GSPC +0.14%, IXIC -0.10%) both gains tended to be limited due to technical factors already in the overbought area. Meanwhile, Treasury yields rose, with the 10-year yield breaking above 1.5% on Wednesday.

Today's market is estimated to have a chance to strengthen if it manages to move bullish. However, if on the other hand JCI becomes bearish, the market will go down first to close the nearest gap area.

JCI closed higher with a bearish candle. The stochastic indicator is bullish, MACD histogram is moving in a positive direction (sloping line) and volume is falling. If JCI moves bullish again, there is a chance for the rally to continue or strengthen to the resistance at the range of 6,632 - 6,653. If JCI moves to a bearish candle and breakdown to below level 6,585, it can go down first to support at the range of 6,562 – 6,575.

Commodities Review

• Oil prices were going up on Wednesday (29/12), after government data showed U.S. crude and fuel inventories fell last week. But concerns that rising coronavirus cases could weigh on demand.
• Gold prices were decreased a bit on Wednesday (29/12) as a weaker dollar helped offset pressure from rising US Treasury yields and increasing appetite for risk assets.

Macro Economic News

• The Business Survey Index (BSI) on business conditions in the manufacturing sector in South Korea rose to 95 in December of 2021 after three consecutive months steady at 90, marking the highest level in the past five months.
• The US goods trade deficit widened to an all-time high of USD 97.78 billion in November 2021 from a revised USD 83.2 billion in the previous month, the advance estimate showed. Imports rose 4.7 percent to USD 252.43 billion, reflecting the ongoing recovery in domestic demand due to rising wages and a fast-recovering economy.
• Wholesale inventories in the US increased 1.2% mom to $769.9 billion in November of 2021, following a 2.5% rise in October, preliminary estimates showed.

Corporate news

• In the third quarter of 2021, sales of PT Charoen Pokphand Indonesia (CPIN) fell 7.2% on a quarterly basis to IDR 37.59 trillion. Meanwhile, net profit fell 111.4 percent on a quarterly basis to IDR 2.67 trillion.
• PT Formosa Ingredient Factory Tbk (BOBA) announced the establishment of a subsidiary, PT Nutri Boga Sukses (NBS) with 360 shares invested in NBS with a nominal value of IDR 1 million per share.
• PT Nusa Konstruksi Enjiniring Tbk (DGIK) until the third quarter of 2021, DGIK posted revenue of IDR 232.8 billion, a decrease of 27.2% compared to the same period last year.

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