Three US main indexes closed lower, with the Nasdaq at its lowest point in 2022, as Pending Home Sales (MoM) (Nov) economic data fell 4%, higher than expected from minus 0.8%. The increase in Covid cases in China and the Russia-Ukraine geopolitical tensions have also affected the negative sentiment in the stock market. The energy sector posted the most significant decline of 2.2% on fears of disruptions to Chinese demand due to the rapid spread of Covid. The S&P500 fell by 20% YTD, the biggest drop since the financial crisis in 2008. Moreover, the market sees a 69% chance of FFR rising at 25 bps on the FOMC Meeting next February, with FFR standing at 4.94% in the first half of next year.
Corporate Bonds
WIKA: Pocketing IDR3.3 T. PT Wijaya Karya (Persero) Tbk (WIKA) recorded a new contract acquisition at the end of 2022. The company, a part of the Obayashi-Jaya Konstruksi-JFE Engineering Consortium, was appointed by the Ministry of Public Works and Public Housing (PUPR) to work on the Jakarta Sewerage Development Project (JSDP) with a contract worth IDR3.33 trillion. Additionally, this project is a form of WIKA’s support to improve the people of Jakarta’s health regarding waste free by constructing a Central Wastewater Management system. (Emitien News)
Domestic Issue
Indonesia Discovers New Gas Reserves
At the end of 2022, Indonesia discovered a new gas reserve through the Flamboyan-1 exploration well, South Sumatra Block. The well, which is located in South Sumatra, was successfully found by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) in collaboration with Cooperation Contract Contractors (KKKS), Medco E&P. The well’s test results are proven to produce high-quality gas, with the potential to produce gas production of 15MMSCFD. (Bisnis.com)
Recommendation
JCI pullback after reaching 6950-6960 Resistance is still considered a reasonable consolidation as long as the MA20 & MA10 Support Test does not end with a Closing below 6825-6815. Foreign again posted a Net Sell (all market) of IDR461.32 billion, with reducing positions last week in blue chip stocks, such as BBCA, TLKM, GOTO, BBNI, BMRI, ASII, and BBRI. Despite the short-term bullish, JCI still has a chance to reach the 7000- 7100 target by the end of the year. NHKSI RESEARCH advises traders/investors to do a gradual buying strategy and pay attention to money management.
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