The JCI January 28, 2020

Jᴀɴᴜᴀʀʏ 28, 2020

* Tʜᴇ JCI ᴛʀᴀᴅɪɴɢ ʀᴀɴɢᴇ: 6,110ᴘᴛ – 6,185ᴘᴛ (Yᴇsᴛᴇʀᴅᴀʏ ᴄʟᴏsᴇ: 6,133ᴘᴛ)

* Wᴀʟʟ Sᴛʀᴇᴇᴛ ᴇɴᴅᴇᴅ ᴡɪᴛʜ ʜᴜɢᴇ ᴅʀᴏᴘ ꜰᴏʀ ᴠɪʀᴜs ᴏᴜᴛʙʀᴇᴀᴋ sᴛᴀʀᴛᴇᴅ ɪɴ Cʜɪɴᴀ ᴛʜᴇ ᴡᴏʀʟᴅ ʀᴀɴᴋᴇᴅ #2 ʙʏ GDP ᴏꜰ ᴄ.16% ʟᴀsᴛ ʏᴇᴀʀ

* Tʜᴇ JCI ɪs ᴇxᴘᴇᴄᴛᴇᴅ ᴛᴏ ʀᴇʙᴏᴜɴᴅ ꜰᴏʀ ᴛᴇᴄʜɴɪᴄᴀʟ ʀᴇᴀsᴏɴ ᴀs ɪɴᴅɪᴄᴀᴛᴏʀ Wɪʟʟɪᴀᴍ’s R ʀᴇᴀᴄʜᴇᴅ ʙᴏᴛᴛᴏᴍ ᴏꜰ 0 ᴛᴏ ɪɴᴅɪᴄᴀᴛᴇ ᴀɴ OᴠᴇʀSᴏʟᴅ

Morning,

The Jakarta Composite Index (JCI) today (28/1) is expected to be in the range of 6,110pt-6,185pt, likely to regain edge amid lower oil close and coronavirus fear.  Yesterday (27/1), Wall Street ended weaker with the DJIA closed down by 454 points or 1.6% to 28,536pt, while the S&P500 and the Nasdaq both closed lower  by 1.6% and by 1.9% respectively. The sell-offs mainly attributed to the fear of the spreading of the SARS-like virus from China  might harm global growths.

Meanwhile, yesterday  the WTI price settled at USD53.1/barrel or lower by 1.9%  against the previous close. At the other end, USDIDR closed at IDR13,612 yesterday  vs. IDR13,632 the previous close.

We advise the following recommendation for 1Q20. 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,