The JCI July 12, 2019

𝐉𝐮𝐥𝐲 𝟏𝟐, 𝟐𝟎𝟏𝟗

* 𝐓𝐡𝐞 𝐉𝐂𝐈 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐫𝐚𝐧𝐠𝐞 𝐭𝐨𝐝𝐚𝐲 : 𝟔,𝟑𝟖𝟓𝐩𝐭 – 𝟔,𝟒𝟔𝟎𝐩𝐭 (𝐲𝐞𝐬𝐭𝐞𝐫𝐝𝐚𝐲 𝐜𝐥𝐨𝐬𝐞: 𝟔,𝟒𝟏𝟕𝐩𝐭)

* 𝐖𝐢𝐝𝐞𝐫 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐫𝐚𝐧𝐠𝐞 𝐟𝐨𝐫 𝐮𝐧𝐜𝐞𝐫𝐭𝐚𝐢𝐧 𝐨𝐩𝐭𝐢𝐦𝐢𝐬𝐭𝐢𝐜 𝐯𝐢𝐞𝐰

* 𝐓𝐫𝐚𝐝𝐢𝐧𝐠 𝐢𝐬 𝐞𝐯𝐞𝐧 𝐦𝐨𝐫𝐞 𝐞𝐦𝐩𝐡𝐚𝐬𝐢𝐳𝐞𝐝 𝐚𝐬 𝐟𝐨𝐫 𝐧𝐨𝐰

Morning,

The Jakarta Composite Index (JCI) today (12/7) is expected to be in the range of 6,385pt – 6,460pt to be supported by the still-euphoria on dovish prospect by the Fed.  Wall Street closed with the DJIA reached its all-time high at 27,088pt yesterday (11/7). Dovish hope is said to be very subjective for the latest data of US inflation for both headline and core were higher than expected. In addition, earnings for 2H have yet to deliver, while trade agreement between the US and China has not been finalized. These are among factors equity indices are in a higher volatility mode, in our view.

The JCI today is expected to be supported by higher USDIDR that closed at IDR14.108 yesterday, vs. IDR14.152 previously. In addition, WTI price stable close at USD60.2/barrel on yesterday trading is expected to support the JCI today.

We keep the following recommendations. These counters have been hit hard since the end of  March this year and thus offer bargain opportunity both for trading and longer term investment purpose. 𝐀𝐀𝐋𝐈, 𝐋𝐒𝐈𝐏 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘈𝘨𝘳𝘪, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘜𝘯𝘥𝘦𝘳𝘸𝘦𝘪𝘨𝘩𝘵 ), 𝐔𝐍𝐓𝐑, 𝐈𝐓𝐌𝐆, 𝐀𝐃𝐑𝐎, 𝐏𝐓𝐁𝐀 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘊𝘰𝘢𝘭 𝘔𝘪𝘯𝘪𝘯𝘨, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘔𝘢𝘳𝘬𝘦𝘵-𝘸𝘦𝘪𝘨𝘩𝘵), 𝐆𝐆𝐑𝐌, 𝐔𝐍𝐕𝐑, 𝐈𝐂𝐁𝐏 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘊𝘰𝘯𝘴𝘶𝘮𝘦𝘳, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘖𝘷𝘦𝘳𝘸𝘦𝘪𝘨𝘩𝘵 ), 𝐀𝐒𝐈𝐈 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘈𝘶𝘵𝘰𝘮𝘢𝘵𝘪𝘷𝘦, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘔𝘢𝘳𝘬𝘦𝘵-𝘸𝘦𝘪𝘨𝘩𝘵), 𝐚𝐧𝐝 𝐀𝐂𝐄𝐒, 𝐒𝐂𝐌𝐀, 𝐌𝐀𝐏𝐈 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘛𝘳𝘢𝘥𝘦, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘖𝘷𝘦𝘳𝘸𝘦𝘪𝘨𝘩𝘵),𝐚𝐧𝐝 𝐓𝐊𝐈𝐌 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘉𝘢𝘴𝘪𝘤 𝘐𝘯𝘥𝘶𝘴𝘵𝘳𝘺, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘔𝘢𝘳𝘬𝘦𝘵-𝘸𝘦𝘪𝘨𝘩𝘵).

Cheers,