The JCI January 4, 2022
Jᴀɴᴜᴀʀʏ 4, 2022
* Tʜᴇ JCI ᴛʀᴀᴅɪɴɢ ʀᴀɴɢᴇ:6,630ᴘᴛ – 6,740ᴘᴛ (Yᴇsᴛᴇʀᴅᴀʏ ᴄʟᴏsᴇ: 6,665ᴘᴛ)
* Wᴀʟʟ Sᴛʀᴇᴇᴛ ᴇɴᴅᴇᴅ ᴡɪᴛʜ ᴍᴀᴊᴏʀ ᴇǫᴜɪᴛʏ ɪɴᴅɪᴄᴇs ᴄʟᴏsᴇᴅ ʜɪɢʜᴇʀ ʙʏ sᴏᴍᴇ 0.8% ɪɴ ᴛʜᴇ 1sᴛ ᴛʀᴀᴅɪɴɢ ᴅᴀʏ ᴛʜɪs ʏᴇᴀʀ, ᴀʟsᴏ sᴜᴘᴘᴏʀᴛᴇᴅ ʙʏ ɢᴀɪɴ ɪɴ ᴛᴇᴄʜɴᴏʟᴏɢʏ ᴄᴏᴜɴᴛᴇʀs ᴏɴ ɢᴇɴᴇʀᴀʟ ᴏᴘᴛɪᴍɪsᴍs ᴏꜰ ᴛʜᴇ Uɴɪᴛᴇᴅ Sᴛᴀᴛᴇs ᴇᴄᴏɴᴏᴍʏ
* Tʜᴇ JCI ɪs ᴇxᴘᴇᴄᴛᴇᴅ ᴛᴏ ꜰʟᴜᴄᴛᴜᴀᴛᴇ ᴀɴᴅ sᴜᴘᴘᴏʀᴛᴇᴅ ʙʏ sᴛᴀʙʟᴇ USDIDR ᴀɴᴅ ᴏɪʟ-ᴄʟᴏsᴇ
Morning,
The Jakarta Composite Index (JCI) today (1/4) is expected to trade between 6,630pt – 6,740pt and to attempt higher also on the back of bargain hunters. The yield of the 10-year Indonesia government bonds closed flat yesterday at 6.368%. This may cap daily upside of the JCI today, as yesterday (1/3) the yield on the benchmark 10-year US Treasury note rose 13.7 basis points to 1.637%. At the other end, the DJIA closed higher by 247pt or 0.7% to 36,585 pt, while the S&P500 and the Nasdaq Composite both closed higher by 0.6% and 1.2%, respectively.
Yesterday the JCI closed above our estimated day-resistance level, which could be linked to news of the availability of COVID-19 booster to face the possible new wave of variant spread in the country. Also, slightly higher-than-expected Indonesia headline inflation rate for December lent its support, we reckon. The Central Statistics yesterday announced December’s inflation rate at 0.57% MoM and 1.87% YoY. For comparison, December’s inflation rate, estimated by central bank Bank Indonesia (BI) was at 0.25% MoM (November: 0.37% MoM) and an annual rate of 1.55% (November: 1.75% YoY).
At the other end, yesterday the WTI price closed lower by 0.7% to USD74.7/barrel, mainly on the latest news that OPEC+ looked set to agree to a further oil output increase and concern persisted about the demand impact of rising coronavirus cases, despite hopes of a further recovery in 2022. Meanwhile, the USDIDR closed at IDR14,270 vs. IDR14,278 the previous one.
Cheers,