JCI Indication

Bullish (Moderate)

Support / Resistance: 6,152 – 6,218

Market Drivers:

- U.S. - China Trade War
President Trump is expected to meet with top trade advisers on Thursday to discuss planned Dec. 15 tariffs

The Federal Reserve
- Keeps its benchmark rate in a target range of 1.5%-1.75% as expected
- Indicated, on balance, no hike in 2020
- No changes in expectations for U.S. economic growth
- Projected 2019 to finish with a 2.2% gain in GDP, followed in consecutive years by 2%, 1.9% and 1.8% gains
- Reduced inflation expectations this year
- Core PCE is to register just 1.6% growth, down from 1.8% (September)
- Kept its estimates consistent at 1.9% in 2020 and 2% for the following 2 years

Japan’s core machinery orders (October)
- Slipped 6.0% M/M (-6.1% Y/Y) for a fourth straight month
- Slowing demand abroad and at home hit corporate and consumer spending
- Manufacturers’ orders dropped 1.5%
- Orders from the service-sector fell 5.4%

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MARKET NEWS
PT XL Axiata Tbk. (EXCL) is targeting the tower auction process to be completed by March 2020. As is known, approximately 3,000 towers are offered. EXCL tower sales have been carried out for the third time.

PT Estika Tata Tiara Tbk. allocating capital expenditure in 2020 reaching Rp240 billion. The majority of the capital expenditure allocation will be used to enlarge the company's logistics business unit and distribution hub. Both are expected to spend Rp150 billion. In addition, the company will increase the cattle's fattening capacity to 10,000. This effort is estimated to cost IDR 30 billion.

PT United Tractors Tbk. budget lower capital expenditure next year in line with projections of performance that are relatively the same as this year. The value of capital expenditure (capex) next year is estimated to be lower than the 2019 budget of US $ 700 million to US $ 800 million.

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Technical Recommendations :

Stock: *MYOR*
Short Term Trend: Downtrend
Medium Term Trend: Bearish
Trade Buy: 2,040
Target Price 1: 2,100
Target Price 2: 2,165
Stop Loss: 2,005

Stock: *ITMG*
Short Term Trend: Downtrend
Medium Term Trend: Bearish
Trade Buy : 10,725
Target Price 1: 11,075
Target Price 2: 11,725
Stop Loss: 10,425

Stock: *DILD*
Short Term Trend: Sideways
Medium Term Trend: Bearish
Spec Buy : 282
Target Price 1: 306
Target Price 2: 324
Stop Loss: 262

PT. Phillip Sekuritas Indonesia
Research Department
ANZ Tower Level 23B
Jl. Jend. Sudirman Kav. 33A, 10220 Jakarta
Ph: (62 21) 57900 800
Email: research@phillip.co.id
Website: www.poems.co.id