JCI Indication

Bullish (Moderate)

Support / Resistance: 6,121 – 6,174

Market Drivers:
U.S - China Trade Talks
- WSJ: the U.S. and China are still at odds over the size of Chinese agriculture purchases
- President Trump is asking China to buy USD40 bn to USD50 bn of farm goods a year, which is significantly higher than the $8.6 billion the country bought last year

Japan Household Spending (October)
- Dropped 5.1% Y/Y (-11.5% M/M), the fastest pace since March 2016 (-5.3% Y/Y)
  - Consumers cut their purchases following a sales tax hike
  - Natural disasters disrupted business
- Marking a sharp reversal from the 9.5% jump in September
  - Consumers rushed to buy goods before the Oct. 1 tax hike from 8% to 10%

OPEC
- OPEC agreed to cut output by an extra 500,000 bpd in 1Q20, after a nearly six-hour meeting on Thursday
- Details of the agreement and how the cuts will be distributed among producers still need to be ratified at a meeting on Friday


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MARKET NEWS
PT Merdeka Copper Gold Tbk. has realized 75 percent of the targeted capital expenditure this year. 9M19, MDKA has absorbed capital expenditure of US $ 120 million from this year's total target of US $ 160 million. The biggest contribution, amounting to US $ 60 million has been spent to increase production capacity and purchase of heavy equipment in the seven hills mine, Banyuwangi

PT Summarecon Agung Tbk. almost penetrated the marketing sales target of IDR 4 trillion this year. Until the end of last November, SMRA has booked marketing sales of IDR 3.9 trillion. That number increased by 27.86% or Rp855 billion from the realization in August 2019 of Rp3.05 trillion.

Ace Hardware Indonesia Tbk. re-opening new outlets on December 7. With the opening of these new outlets, ACES has a total of 194 outlets. Meanwhile, opening new outlets is one of ACES's strategies in maintaining sales growth at 15% this year.

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Technical Recommendations :
Stock: *ERAA*
Short Term Trend: Downtrend
Medium Term Trend: Bearish
Trade Buy: 1,470
Target Price 1: 1,560
Target Price 2: 1,645
Stop Loss: 1,385

Stock: *ACES*
Short Term Trend: Downtrend
Medium Term Trend: Bearish
Spec Buy : 1,550
Target Price 1: 1,615
Target Price 2: 1,660
Stop Loss: 1,495

Stock: *ELSA*
Short Term Trend: Sideways
Medium Term Trend: Bearish
Trade Buy : 300
Target Price 1: 310
Target Price 2: 324
Stop Loss: 286

Stock: *ASRI*
Short Term Trend: Sideways
Medium Term Trend: Bearish
Spec Buy : 240
Target Price 1: 250
Target Price 2: 258
Stop Loss: 228

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PT. Phillip Sekuritas Indonesia
Research Department
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