The JCI July 23, 2020
Jᴜʟʏ 23, 2020
* Tʜᴇ JCI ᴛʀᴀᴅɪɴɢ ʀᴀɴɢᴇ: 5,085ᴘᴛ -5,200ᴘᴛ (Yᴇsᴛᴇʀᴅᴀʏ ᴄʟᴏsᴇ: 5,110ᴘᴛ)
* Wᴀʟʟ Sᴛʀᴇᴇᴛ ᴇɴᴅᴇᴅ ʜɪɢʜᴇʀ ᴏɴ ɴᴇᴡs ᴏꜰ ᴀɢʀᴇᴇᴍᴇɴᴛ ᴀᴍᴏɴɢ ᴛʜᴇ Uɴɪᴛᴇᴅ Sᴛᴀᴛᴇs (US) ɢᴏᴠᴇʀɴᴍᴇɴᴛ ᴡɪᴛʜ ʙᴏᴛʜ Pꜰɪᴢᴇʀ ᴀɴᴅ BɪᴏNTᴇᴄʜ
* Tʜᴇ JCI ɪs ᴇxᴘᴇᴄᴛᴇᴅ ᴛᴏ ᴇxᴛᴇɴᴅ ʜɪɢʜᴇʀ ʙʏ sᴜᴘᴘᴏʀᴛ ᴏꜰ sᴛᴀʙʟᴇ USDIDR ᴀɴᴅ ᴏɪʟ ᴄʟᴏsᴇ
Morning,
The Jakarta Composite Index (JCI) today (23/7) is expected to be in the range of 5,085pt – 5,200pt to extend higher on liquidity as well as stable USDIDR. Meanwhile, yesterday (22/7) in Wall Street the DJIA ended higher by 165 points or 0.6% at 27,006pt, while the S&P500 and the Nasdaq both gained by 0.6% and 0.2%, respectively, mainly due to the news on an agreement between the United States (US) government with both Pfizer and US-listed BioNTech whereby the former agreed to purchase Coronavirus’ vaccines worth UDS1.95bn if the vaccine proves safe and effective.
At the other end, yesterday the WTI price closed lower by 2 cents at USD41.9/barrel after an increase of 2.8% the previous day. Meanwhile the USDIDR closed at IDR14.655 vs. IDR14.813 the previous one.
We advise the following recommendation as for now, for both trading and longer-time 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,
𝐈𝐧𝐝𝐨𝐧𝐞𝐬𝐢𝐚 𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐒𝐞𝐜𝐭𝐨𝐫
𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫𝐬’ 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐢𝐧𝐠 𝐩𝐨𝐰𝐞𝐫 𝐛𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐟𝐫𝐨𝐦 𝐚 𝐬𝐭𝐫𝐨𝐧𝐠 𝐂𝐏𝐎 𝐝𝐨𝐰𝐧𝐬𝐭𝐫𝐞𝐚𝐦 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲
Effort to develop Indonesia Crude Palm Oil (CPO) down-stream industry has started since a least a decade ago. Value added that is generated from the sale of CPO-based derivative products is obviously higher, in-terms industry’s income as well as employment which eventually lead to higher consumers’ purchasing power.
Indonesia has started CPO’s downstream revival program through 3 (three) development channels. 1) oleofood, that is empowering the production of final food products which are based on CPO, such as cooking oil, margarines, fat powder, food emulsifier 2) oleochemicals, the production of CPO-based final goods such as soaps, shampoo, detergents, fatty alcohol, 3) bio-fuel, that is CPO- based fuels as the alternative of gasoline
The above moves gained importance as Indonesia produces massive CPO, overtook Malaysia in 2006 , and now is the biggest producer in the world with current share of some 61% in terms of production, and Malaysia at 36%.
Effort to develop Indonesia CPO downstream industry has paid off, that in last year, export of CPO- based derivatives products constituted 70% of total CPO produced in terms of volume, as compared to 50% back in 2008. This implies higher portion of production process from the raw materials of CPO being taken place domestically, which eventually lead to higher welfare of the population.
The latest data from the association of Indonesia CPO producers, during January to April 2020, Indonesia CPO production declined by 12.2% YoY as compared to the similar period last year, but domestic consumptions increased by 6.2% YoY to reach close to 6mn tonnes. The increase in domestic demand also indicated that downstream revival programs is on its way to optimally create results. Last year, Indonesia produced 51.8mn ton of CPO (central Statistic data: 45.9mn tonnes)