JCI Indication

Bearish (Moderate)

Support / Resistance: 6,033 – 6,148

Market Drivers:

New Front in the Trade Wars

- President Trump vowed to impose a tariff on all goods coming from Mexico

- Unless Mexico takes steps to stop illegal immigration surge

- The tariffs would go higher, starting at 5% on June 10

- Then go to 10% (July), 15% (Aug), 20% (Sept) and 25% (Oct. 1)

- Mexico was the second-largest importer of goods into the U.S.

   - 13.6% of overall U.S. imports in 2018

- U.S. Govt takes a formal step to kickstart approval of the USMCA

- Chinese Vice FM Zhang Hanhui said that provoking trade disputes amounted to naked economic terrorism

- China has reportedly halted soy purchases from the U.S.

China NBS Manufacturing PMI (May)

- Fell to 49.4 from 50.1 in April, more than expected

- The Caixin manufacturing PMI is due on June 3

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MARKET NEWS

ACES

ACES has opened two new outlets in Medan and South Tangerang. This is the 10th ACES  outlet this year, bringing its total outlets to be 186 outlets.

PSSI

INDF budgeted capital expenditure of IDR 7 trillion throughout 2019 (-23% YoY). Recent AGM decided to allocate 50% of the 2018 profits as dividends or equivalent to IDR 137 per share.

UNTR

UNTR recorded sales of 1,442 units of heavy equipment (-12.9% YoY). Despite the decline, UNTR is still optimistic that this year's heavy equipment sales will reach 4,000 units. This decline in sales so far was due to decline of mining and plantation heavy equipment volume sales.