The Dow Jones Index Closed Higher By 1.1%/345 Points

The Dow Jones Index closed higher by 1.1%/345 points. At the same time, the Nasdaq and S&P500 managed to experience gains of 2.6% and 1.8%, respectively, as US Initial Jobless Claims data reported 225,000 for the week ended Dec. 24, rising as expected from 216,000 the previous week, indicating that the US economy is starting to slow down. Thus, the market hopes the US central bank can end the pace of benchmark interest rate rise. The economic data also triggered a decline in government bond yields, giving positive sentiment for technology stocks, considering that workers’ income growth will slow down.

Corporate Bonds
MEDC: Obtain USD420 Million Loan. PT Medco Energi Internasional Tbk (MEDC) signed a revised and restatement loan facility agreement, amounting USD420 million, with Australia and New Zealand Banking Group Limited Singapore Branch, PT Bank ANZ Indonesia, ING Bank N. V. Singapore Branch (ING), and Societe Generale Singapore Branch (SG). The loan is used to pay off the remaining debt, finance operations and capital costs.

Domestic Issue
The Government Will Implement the B35 Program Through the Ministry of Energy and Mineral Resources (ESDM), the government will implement the B35 program, a mixture of diesel with 35% biodiesel, in February 2023. This program is an effort to anticipate a surge in oil prices, suppress diesel imports, and increase the use of renewable energy. The government has also set the allocation volume for the B35 program in 2023 at 13.15 million kl. (Kontan.co.id)

Recommendation
JCI can finally rise above the MA10 & MA20 Support after buying interest returned when the JCI was overshot to a Low of 6786, indicating a Bull, yet still has hope for a victory. Today, further solid strengthening will be tried, especially with support from the regional market sentiment, with an attempt to go to the level 6950-6960 (up to 7000); to create a better year-end JCI position on the last trading day of 2022. Foreign Net Sell (all market) is still recorded at IDR1.7 trillion, while the Foreign Net Buy is slightly flat at IDR62.9 trillion YTD.

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