The JCI November 29, 2019

Nᴏᴠᴇᴍʙᴇʀ 29, 2019

* Tʜᴇ JCI ᴛʀᴀᴅɪɴɢ ʀᴀɴɢᴇ : 5,910ᴘᴛ – 6,000ᴘᴛ (Yᴇsᴛᴇʀᴅᴀʏ ᴄʟᴏsᴇ: 5,953ᴘᴛ)

* Wᴀʟʟ Sᴛʀᴇᴇᴛ ᴏɴ ᴘᴜʙʟɪᴄ ʜᴏʟɪᴅᴀʏ ʏᴇsᴛᴇʀᴅᴀʏ, ᴀᴛ ᴛʜᴇ ɴᴇᴡ ʜɪɢʜs ᴄʟᴏsᴇ

* Fᴏʀᴇɪɢɴ ɴᴇᴛ ᴏғ IDX sʜᴏᴡᴇᴅ ᴏᴜᴛғʟᴏᴡs ᴏғ ᴄ.36%  ᴏʀ IDR25ᴛʀ sɪɴᴄᴇ Jᴜɴᴇ

Morning,

The Jakarta Composite Index (JCI) today (29/11) is expected to be in the range of 5,910pt-6,000pt. The JCI is now off its technical bottom to hold on to foreign selling by the support of bargain on major counters.  Wall Street hit another the day before yesterday (27/11) on the United States (US) stronger-than-expected economy data releases. The US equity trading was closed yesterday (28/11) on public holiday.

At the other end, during yesterday close USDIDR was at IDR14.099 vs. IDR14.006 previously, and  the WTI price closed to USD57.8/barrel, down by 0.6%.

Data of Indonesian Stock Exchange showed that as year-to-date November 22, foreign funds in the domestic stock market registered a net inflow of IDR43.8tr representing a decline of IDR25tr since end of June of IDR68.8tr. The peak of net outflow came in during the 3Q19 at –IDR16.9tr, while during the month of October and November, both at c. IDR4tr (see Chart 1).

We suspect foreign funds, as for now, has a very strong perception that growth outside Indonesia, especially that of the US that led the advanced economies, would maintain the sweet surprises.  This week had witnessed rows release of the US economic data that were above market consensus expectation, for example, the number of job growth and durable goods orders. Also US 3Q19 GDP second reading came higher (2.1% YoY) than the previous release (1.9% YoY). Should perceptions balance out both for the advanced economy and Indonesia foreign trading become stabilize, in our view. (See Charts)

We keep the following recommendations. These counters have been hit hard since the end of  March this year and thus offer bargain opportunity both for trading and longer term 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,