Manufacturing data was above expectations, propelling stocks into the green zone, before Wall Street finally closed lower in early August. US July ISM Manufacturing data came in at 52.8 (Surv. 52.0; Jun. 53.0), slowing from the previous month, showing that factories in Asia and Europe are struggling to cope with supply shortages, as global demand sluggish and tight restrictions due to Covid-19 in China is slowing down production. The manufacturing slowdown overshadowed a number of better-thanexpected Quarterly Results, sending the Dow Jones down 46 points or down 0.1%; with the S&P500 and Nasdaq down 0.3% and 0.2%, respectively. The manufacturing slowdown also pressured the price of WTI and Brent for October 2022 contracts, which fell 4% to USD92.4/Barrel and USD100.0/Barrel, respectively.

The absence of the FOMC Meeting in August made the JCI focus on Earning Results. At the beginning of the first session of trading, the JCI had touched the psychological level of 7,000, before finally closing at 6,968. A number of domestic economic data supported the JCI yesterday, such as: S&P Global Indonesia Manufacturing PMI in July which continued to expand, at the level of 51.3 (Jun. 50.2); and July’s Core CPI YoY of 2.86% (Jun. 2.63%) or still within BI’s target of 2%-4%, meaning BI still have room to hold back the BI 7DRRR. Meanwhile, investors are still keeping an eye on the July YoY CPI Headline which reached 4.94%, exceeding the upper limit of BI’s 4.5%-4.6% target. NHKSI Research projects that JCI has the potential to consolidate with Support: 6915-6890 / 6850, and Resistance: 7000 -7032 / 7150-7175, making us recommend Sell on Strength/Hold.

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