KSI Morning Report

Market Prediction

Yesterday, JCI closed down -0.38% to level of 6,660.46. Foreign market players recorded a net sell of IDR 410.91 billion (all market) and net sell of IDR 284.55 billion (RG market). The top 5 foreign net buy stocks are BBRI (37.0B), AKRA (32.9B), HRTA (13.7B), ICBP (12.9B) & ISAT (11.2B). Meanwhile, the top 5 foreign net sellers were BBCA (103.4B), FILM (44.9B), AMRT (29.9B), INDF (29.0B) & MDKA (27.6B).

Wall Street's main indexes closed lower (DJI -0.72%, GSPC -0.47%, IXIC-0.16%). EIDO closed down -1.03%. As investors await comments from several Fed officials this week, especially Chair Powell's semiannual report to Congress for further clues on the central bank's next steps.

Today's JCI is expected to move volatile tend to be lower and after that there is a chance for a technical rebound.

JCI closed lower with a bearish candle. Stochastic indicator is bearish, MACD histogram is moving positive but down (sloping line) and volume is decreasing. If it moves bearish again, JCI is expected to weaken again to the support range of 6,598 – 6,626. If JCI is able to move bullish, there is a chance for JCI to go to the resistance at the range of 6,692 – 6,705.

Commodities:

• Oil futures eased in choppy trading on Tuesday on forecasts for slower oil demand growth in China, the world's second-biggest oil consumer, and disappointment with the size of cuts in China's key lending rates.

Macro Economic News

• Building permits in the United States increased by 5.2 percent to a seasonally adjusted annual rate of 1.491 million in May 2023, following two consecutive months of decline and surpassing market expectations of 1.42 million, according to a preliminary estimate.
• The People's Bank of China (PBoC) slashed two key lending rates for the first time since August 2022 at the June fixing, as authorities seek to prop up growth.
• The PBoC cut the five-year loan prime rate which is a reference for mortgages, by 10bps to 4.2% in June 2023, the first cut since August last year, and in line with market expectations.

Corporate news

• PT Fortune Indonesia Tbk (FORU) has recorded revenue reaching IDR 12.99 billion during the first three months of 2023.
• Until the first quarter of 2023, PT Chandra Asri Petrochemical Tbk (TPIA) posted a net profit of USD 8.57 million, an improvement over the same period in 2022, suffering a net loss of USD 11.235 million.
• Performance of PT RMK Energy Tbk (RMKE) is still growing, which is reflected in the increase in RMKE operational performance from January to May 2023. As of May 2023, RMKE has managed to dismantle 1,970 train sets with a capacity of 5.2 million metric tons of coal. This realization grew by 19.7% year-on-year (YoY) compared to the same period last year.

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