KSI Morning Report - Feb 23, 2023
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23 Feb 2023

Market Prediction

Yesterday, JCI closed down -0.92% to a level of 6,809.97. Foreign market players recorded a net sell of IDR 38.04 billion (all market). The top 5 foreign net buy stocks are BBRI (108.0B), TLKM (67.7B), GOTO (29.9B), ADRO (29.7B) & MDKA (26.3B). As for the top 5 foreign net sellers, such as BMRI (57.4B), ARTO (41.8B), GGRM (28.1B), BTPS (25.2B) & ASII (24.6B). Wall Street's main indexes closed lower (DJI - 0.26%, GSPC -0.16%, IXIC +0.13%). EIDO closed down -0.74%. A strong majority of policy makers agreed to slow the pace of rate hikes, resulting in a smaller 25 bps increase in February. However, they cautioned that the tightening cycle is not over as inflation risks remain skewed to the upside Today's JCI is expected to move sideways with limited opportunities to strengthen. JCI closed lower and breakdown the short-term support. Stochastic indicator is bearish, MACD histogram is moving negative (dead line cross) and volume is increasing. If it moves bearish, JCI is expected to weaken to the support range of 6,726 – 6,754. If JCI is able to move bullish, there is a chance for JCI to go to the resistance at the range of 6,835 – 6,863.

Commodities Review

• Gold prices fell on Wednesday (22/2). The United States (US) dollar strengthened after minutes from the Federal Open Market Committee (FOMC) showed policy makers support more rate hikes to tame inflation.

• The price of crude oil fell 2% to its lowest level in two weeks on Wednesday (22). Investors are becoming more concerned that recent economic data will mean more aggressive rate hikes by central banks, impacting economic growth and fuel demand.

Macro Economic News

• The Business Survey Index (BSI) for the manufacturing sector in South Korea dropped to 63 in February 2023, the lowest since July 2020, from 66 in the previous month

• The Reuters Tankan sentiment index for manufacturers in Japan stood at -5 in February 2023, remaining negative for the second straight month as a slowing global economy held back the country’s recovery from the pandemic slump.

Corporate news

• PT Indo Tambangraya Megah Tbk (ITMG) recorded profit for the year attributable to owners of the parent entity or net profit of USD 1.20 billion in 2022, skyrocketing 152.34 percent compared to 2021 which amounted to USD 475.57 million.

• PT Delta Dunia Makmur Tbk. (DOID) recorded an increase in coal production volume, as well as overburden (OB) removal activity at its business entity, PT Bukit Makmur Mandiri Utama (BUMA), in January 2023. Production volume continued to increase due to a higher contribution from Australia and a contract from PT Bayan Resources Tbk. (BYAN) increased.