The JCI December 2, 2021

𝐃𝐞𝐜𝐞𝐦𝐛𝐞𝐫 𝟐, 𝟐𝟎𝟐𝟏

* 𝐓𝐡𝐞 𝐉𝐂𝐈 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐫𝐚𝐧𝐠𝐞: 𝟔,𝟒𝟔𝟎𝐩𝐭 – 𝟔,𝟔𝟎𝟎𝐩𝐭 (𝐘𝐞𝐬𝐭𝐞𝐫𝐝𝐚𝐲 𝐜𝐥𝐨𝐬𝐞: 𝟔,𝟓𝟐𝟖𝐩𝐭)

* 𝐖𝐚𝐥𝐥 𝐒𝐭𝐫𝐞𝐞𝐭 𝐞𝐧𝐝𝐞𝐝 𝐥𝐨𝐰𝐞𝐫 𝐛𝐲 𝐬𝐨𝐦𝐞 𝟐%, 𝐚𝐟𝐭𝐞𝐫 𝐚𝐝𝐯𝐚𝐧𝐜𝐢𝐧𝐠 𝐛𝐲 𝐬𝐨𝐦𝐞 𝟐% 𝐝𝐮𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐝𝐚𝐲, 𝐦𝐚𝐢𝐧𝐥𝐲 𝐨𝐧 𝐧𝐞𝐰𝐬 𝐨𝐟 𝐜𝐨𝐧𝐟𝐢𝐫𝐦𝐞𝐝 𝐜𝐚𝐬𝐞 𝐨𝐟 𝐧𝐞𝐰 𝐂𝐎𝐕𝐈𝐃-𝟏𝟗 𝐯𝐚𝐫𝐢𝐚𝐧𝐭 𝐨𝐦𝐞𝐜𝐫𝐨𝐧 𝐢𝐧 𝐭𝐡𝐞 𝐔𝐧𝐢𝐭𝐞𝐝 𝐒𝐭𝐚𝐭𝐞𝐬 (𝐔𝐒)

* 𝐓𝐡𝐞 𝐉𝐂𝐈 𝐢𝐬 𝐞𝐱𝐩𝐞𝐜𝐭𝐞𝐝 𝐭𝐨 𝐟𝐥𝐮𝐜𝐭𝐮𝐚𝐭𝐞 𝐚𝐧𝐝 𝐛𝐞 𝐬𝐮𝐩𝐩𝐨𝐫𝐭𝐞𝐝 𝐛𝐲 𝐬𝐭𝐚𝐛𝐥𝐞 𝐔𝐒𝐃𝐈𝐃𝐑 𝐚𝐧𝐝 𝐨𝐢𝐥-𝐜𝐥𝐨𝐬𝐞

Morning,

The Jakarta Composite Index (JCI) today (12/2) is expected to trade between 6,460pt – 6,600pt to  stick around also on the back of  bargain hunters. Meanwhile, yesterday (12/1), Wall Street ended with the DJIA closed lower by 462pt or 1.3% to 34,022pt, and the S&P500 and the Nasdaq Composite also closed lower by 1.2% and 1.8%, respectively. The yield of 10-year US government bonds declined by relatively higher of 8bp at yesterday’s close.

The JCI today  is expected to be supported also by data of the countrys’ inflation for November which is better-than-expect. Indonesia November’s price increase index points to 0.37% MoM (Estimate: 0.34% MoM, October: 0.12% MoM) and 1.75% YoY (Estimate: 1.72% YoY,October: 1.66% YoY). In addition, COVID-19 pandemic indicators profile is generally stable with the capital city Jakarta’s latest daily positivity rate stands at 0.4%, or within the record low of 0.2%-0.4%.

Nevertheless, at least in the last 3 (three) days, foreign funds  in the JCI netted a  Sell,  and yesterday amounted of a relatively high amount of IDR621bn.  The case is linked to the news on the new variant of COVID-19 omicron,in the middle of strong US economic data.  The new variant Omicron  triggered new uncertainy on the US central bank approach toward tapering of the bonds purchase and schedule of FFR hike. The current uncertainties had also been reflected in the fluctuating and declining yield of the US 10-year Treasury note in the previous days  which at yesterday’s close of 1.42%, down by 1bp,  seemed to be stablized.

At the other end, yesterday  the WTI price  closed lower by 0.4% to USD65.9/barrel  mainly ondemand worries by news that of a confirmed case of COVID-19 variant omecron in the US. Meanwhile, the USDIDR closed  at IDR14,353 vs. IDR14,320 the previous one.

We advise the following recommendations, 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), 𝐒𝐈𝐃𝐎, 𝐔𝐋𝐓𝐉, 𝐔𝐍𝐕𝐑, 𝐈𝐂𝐁𝐏 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘊𝘰𝘯𝘴𝘶𝘮𝘦𝘳, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘖𝘷𝘦𝘳𝘸𝘦𝘪𝘨𝘩𝘵 ), 𝐚𝐧𝐝 𝐀𝐂𝐄𝐒, 𝐒𝐂𝐌𝐀, 𝐌𝐀𝐏𝐈,𝐌𝐍𝐂𝐍 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘛𝘳𝘢𝘥𝘦, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘖𝘷𝘦𝘳𝘸𝘦𝘪𝘨𝘩𝘵),𝐚𝐧𝐝 𝐓𝐊𝐈𝐌 (𝐬𝐞𝐜𝐭𝐨𝐫 𝐨𝐟 𝘉𝘢𝘴𝘪𝘤 𝘐𝘯𝘥𝘶𝘴𝘵𝘳𝘺, 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝘔𝘢𝘳𝘬𝘦𝘵-𝘸𝘦𝘪𝘨𝘩𝘵).

Cheers,