The JCI December 30,2021

Dᴇᴄᴇᴍʙᴇʀ 30, 2021

* Tʜᴇ JCI ᴛʀᴀᴅɪɴɢ ʀᴀɴɢᴇ: 6,570ᴘᴛ – 6,680ᴘᴛ (Yᴇsᴛᴇʀᴅᴀʏ ᴄʟᴏsᴇ: 6,601ᴘᴛ)

* Wᴀʟʟ Sᴛʀᴇᴇᴛ ᴇɴᴅᴇᴅ ᴡɪᴛʜ ᴛʜᴇ DJIA ᴀɴᴅ ᴛʜᴇ S&P500 ᴄʟᴏsᴇᴅ ᴀᴛ ʀᴇᴄᴏʀᴅ-ʜɪɢʜ, ᴍᴏsᴛʟʏ ᴏɴ ᴛʜᴇ ᴏᴘᴛɪᴍɪsᴍ ᴛʜᴀᴛ ᴛʜᴇ Uɴɪᴛᴇᴅ Sᴛᴀᴛᴇs (US) ᴇᴄᴏɴᴏᴍʏ & ʙᴜsɪɴᴇssᴇs ᴛᴏ ᴄᴏɴᴛɪɴᴜᴇ ʙᴇ ʀᴇsɪʟɪᴇɴᴛ ᴀɴᴅ ᴀɢɪʟᴇ ᴛᴏ ꜰᴀᴄᴇ ᴛʜᴇ ɴᴇᴡ ᴘᴀɴᴅᴇᴍɪᴄ ᴄʜᴀʟʟᴇɴɢᴇs ɴᴇxᴛ ʏᴇᴀʀ

* Tʜᴇ JCI ɪs ᴇxᴘᴇᴄᴛᴇᴅ ᴛᴏ ʜᴏᴠᴇʀ ɪɴ ɢʀᴇᴇɴ sᴜᴘᴘᴏʀᴛᴇᴅ ʙʏ sᴛᴀʙʟᴇ USDIDR ᴀɴᴅ ᴏɪʟ-ᴄʟᴏsᴇ

Morning,

The Jakarta Composite Index (JCI) today (12/30) is expected to trade between 6,570pt – 6,680pt to gain edge also on the back of  bargain hunters. Today is Indonesia last stock trading day for the year.   Meanwhile, yesterday (12/29) in Wall Street, the DJIA closed higher by 90pt or 0.3% to 36,488pt, while the S&P500 and the Nasdaq Composite   closed lower higher by 0.1% and lower by 0.1%, respectively.   The US equity market, two days before the last trading day this year (12/31), was marked by optimisms which also be reflected in the bond market.  The yield of the 10-year US Treasury note surged by 7bp on a technical catch-up close yesterday.

This year the JCI is expected to close quite far below most estimates formed in the start point, of within 7,000pt or higher. Acceleration of recovery, being the point of focus, is lower for Indonesia as compared to other major countries is the main reason, we suspect.

At the other end, yesterday   the WTI price closed higher by 0.8% to USD76.6/barrel,  mainly on supply worries as the latest weekly US crude inventory data was released at a decline of 3.6mn barrels or higher than consensus’ estimate of a drop by 3.1mn barrel.  Meanwhile, the USDIDR closed  at IDR14,265  vs. IDR14,237 the previous one.

As the  generally-accepted practice of 1 to 4 times published reports on counters’coverage was  not fulfilled this year, we herewith omit our counters’ recommendation and sectors’ weight suggestion as for now.

Cheers,