The JCI January 6, 2022

Jᴀɴᴜᴀʀʏ 6, 2022

* Tʜᴇ JCI ᴛʀᴀᴅɪɴɢ ʀᴀɴɢᴇ: 6,610ᴘᴛ – 6,720ᴘᴛ (Yᴇsᴛᴇʀᴅᴀʏ ᴄʟᴏsᴇ: 6,662ᴘᴛ)

* Wᴀʟʟ Sᴛʀᴇᴇᴛ ᴇɴᴅᴇᴅ ᴡɪᴛʜ ᴍᴀᴊᴏʀ ᴇǫᴜɪᴛʏ ɪɴᴅɪᴄᴇs ᴄʟᴏsᴇʀ ʟᴏᴡᴇʀ ʙʏ ᴍᴏʀᴇ ᴛʜᴀɴ 1%, ᴍᴀɪɴʟʏ ᴀs ɪɴᴠᴇsᴛᴏʀs ᴡᴏʀʀɪᴇᴅ ᴏɴ ᴛʜᴇ ɪᴍᴘᴀᴄᴛ ᴏꜰ  ᴍᴏʀᴇ-ᴛʜᴀɴ-ᴀɴᴛɪᴄɪᴘᴀᴛᴇᴅ ᴛɪɢʜᴛᴇɴɪɴɢ ᴍᴏɴᴇᴛᴀʀʏ ᴘᴏʟɪᴄʏ ʙʏ ᴛʜᴇ ᴄᴏᴜɴᴛʀʏ’s ᴄᴇɴᴛʀᴀʟ ʙᴀɴᴋ, ᴀs ᴛʜᴇ Uɴɪᴛᴇᴅ Sᴛᴀᴛᴇs (US) ᴍᴀᴄʀᴏ ᴅᴀᴛᴀ ᴄᴏɴᴛɪɴᴜᴇᴅ ᴛᴏ ʙᴇ ʀᴏʙᴜsᴛ

* Tʜᴇ JCI ɪs ᴇxᴘᴇᴄᴛᴇᴅ ᴛᴏ ꜰʟᴜᴄᴛᴜᴀᴛᴇ ᴀɴᴅ ʙᴇ sᴜᴘᴘᴏʀᴛᴇᴅ ʙʏ sᴛᴀʙʟᴇ USDIDR ᴀɴᴅ ᴏɪʟ-ᴄʟᴏsᴇ

Morning,

The Jakarta Composite Index (JCI) today (1/6) is expected to trade between 6,610pt – 6,720pt and to stick around also on the back of  bargain hunters.The yield of the 10-year Indonesia government bonds closed lower by 3bp yesterday , while that the US Treasury note of the same tenor, rose by 3bp.  The US private payrolls data for December increased by 807k units vs. the estimated 375k unit.  At the other end, the DJIA closed lower by 393pt or 1.1% to 36,407 pt, while the S&P500 and the Nasdaq Composite   both closed lower by 1.9% and 3.3%, respectively.

The JCI today is expected to be impacted by the news streams concerning the development of COVID-19 spread in the country which is increasing in the last 7 (seven) days in capital Jakarta city. The latest daily positivity rates stood at 1.9% (previous day of 1.0%), meaningfully  higher as compared to record low of 0.2%-0.4% in the month. Effective Monday (1/3) most schools in Jakarta city started a 100%-capacity, of maximum 6 (six) hours/day of face-to- face learning (vs. 50% since September).

At the other end, yesterday   the WTI price closed higher by 1% to USD78.3/barrel,  mainly on supply worry following the decision of OPEC+ member to keep its  production addition policy of 400k barrels/day, contrary to the long-expected expansion one by the US administration. Meanwhile, the USDIDR closed  at IDR14,365 vs. IDR14,310 the previous one.

Cheers,