Market Prediction

Yesterday's trading, JCI closed higher by +0.45% to 6,695.37. Foreign market players recorded a net sell of IDR 546.63 billion (all markets).

Wall Street's main indexes closed mixed (DJI +0.59%, GSPC -0.06%, IXIC -1.33%). DJI's gains were driven by stocks in the financial sector and investors were still looking for stocks that would benefit from the economic recovery amid the high number of COVID-19 cases.

The market today still has a limited chance of strengthening but there is big potential to profit-taking action and turns down.

JCI closed higher with a bullish candle. The stochastic indicator is bullish, MACD histogram is moving positive (golden cross line) and volume is increasing. If JCI moves bullish again, there is a chance to continue the rally or strengthen to the resistance at the range of 6,720 - 6,732. If JCI moves to a bearish candle and goes down below level 6,688, JCI can move to support at the range of 6,661 – 6,675. After that, if JCI is able to hold above support, the short-term upward trend could continue.

Commodities Review

• Oil price jumped on Tuesday, as OPEC+ agreed to stick with its planned increase for February based on indications that the Omicron coronavirus variant would have only a mild impact on demand.

Macro Economic News

• The Caixin China General Manufacturing PMI rose to 50.9 in December 2021 from 49.9 in November, beating market estimates of 50.0. This was the highest reading since June, as the impact of scattered COVID-19 flare-ups was under control.
• The ISM Manufacturing PMI in the US fell to 58.7 in December of 2021 from 61.1 in November, below market forecasts of 60.
• The number of job openings in the United States decreased to 10.562 million in November 2021 from an upwardly revised 11.033 million in the previous month and below market expectations of 11.075 million.

Corporate news

• PT PP Presisi (PPRE) managed to record a new contract worth IDR 5.6 trillion. An increase of 100 percent compared to the same period in 2020 in the range of IDR 2.8 trillion. The realization of the new 2021 contract also exceeded the 2021 target by 153 percent.
• PT Bank KB Bukopin Tbk (BBKP) said that the company had conducted affiliated transactions with a subsidiary, PT Bank KB Bukopin Syariah (KBBS) by providing a subordinated loan of IDR 350 billion.
• PT MNC Studios International Tbk (MSIN) will acquire 3 companies affiliated with MNC media in the context of digital business consolidation. The total acquisition transaction reached IDR 3.38 trillion.
• PT Bukalapak.com Tbk (BUKA) announced a plan to buy 2.49 billion shares of PT Allo Bank Indonesia Tbk (BBHI) worth IDR 1.19 trillion. This proposed transaction is neither a Material Transaction nor an Affiliated transaction as referred to in the Financial Services Authority Regulation which regulates the said transaction.

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