Market Prediction

Yesterday, JCI closed down -0.45% to a level of 6,829.93. Foreign market players recorded a net sell of IDR 222.69 billion (all market). The top 5 foreign net buy stocks are BBNI (174.6B), MDKA (19.9B), ARTO (18.5B), UNVR (15.9B) & ASII (9.1B). As for the top 5 foreign net sellers, which are BMRI (137.3B), BBCA (67.6B), BBRI (38.5B), GGRM (37.3B) & GOTO (34.0B)

Wall Street's main indexes closed mixed (DJI +0.03%, GSPC -0.02%, IXIC -0.18%). EIDO closed down -0.22%. Investors are concerned about a possible recession as higher borrowing costs keep more companies from growing while slower sales force some to lay off.

Today's JCI is expected to move lower towards the nearest support. JCI closed lower and formed a swing high. Stochastic indicator dead cross, MACD histogram is moving positive but down (bullish line) and volume is decreasing. If it moves bearish, JCI is expected to continue weakening to the support at the range of 6,754 – 6,786. If JCI is able to move bullish, there is a chance for JCI to go to the resistance at the range of 6,871 – 6,888.

Commodities Review

• Gold prices reversed to edge up on Wednesday (25/1). After the dollar weakened, investors continued to monitor economic data from the United States (US), which could influence the Federal Reserve's monetary policy meeting next week. 

Macro Economic News

• The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) in the US dropped 3bps to 6.2% in the week ended January 20th, 2023.

• The Composite Consumer Sentiment Index (CCSI) was at 90.7 in January of 2023, from an upwardly revised 90.2 points in the prior month. 

Corporate news

• PT Indika Energy Tbk. (INDY) is increasingly keen to diversify its business outside of mining. The company, through its subsidiaries, has begun to expand into the distribution business of medical devices to the essential oil industry.

• PT Adhi Karya (Persero) Tbk. (ADHI) targets the growth of new contracts to reach 10-15 percent in 2023, or to around IDR 27.25 trillion. In 2022, ADHI recorded the acquisition of new contracts of IDR 23.7 trillion, an increase of 57 percent from IDR 15.2 trillion compared to the previous year.