Global Market Highlight
DJIA rose by +1.60% on Wednesday (09/09) followed by S&P500 (+2.01%) and Nasdaq (+2.71%). After 3 days of consecutive corrections, global markets rebounded finally although still limited. The market is quite anxious about AstraZeneca's vaccine trials due to volunteers getting sick after testing. Even though this vaccine is the main candidate who is thought to be the most ready. On the other hand, investors are also still waiting for data on the results of the US job opening survey. Based on consensus, the employment rate increased to 6 million (previously 5.9 million).This is expected to be a positive catalyst for global indices.Moreover, the market will look forward to several data releases today, such as: 1) US Initial Jobless Claims; 2) US Purchasing Price Index; 3) US Wholesale Inventories.
Domestic Updates
BI release Retail Sales which still tumbled by -12.30% YoY in July, although it seems to recover from a -17.1% YoY decline last month. Retail sales have continued to improve even though they are still in a contraction phase. Sales improvement is predicted for nearly all commodity groups surveyed, with sales in the Food, Beverage and Tobacco category experiencing the lowest contraction, with growth at -1.9% YoY. This is in line with the increase in people's purchasing power and the implementation of New Habit Adaptation (AKB). In terms of prices, inflationary pressure is predicted to increase, reflected in the General Price Expectation Index (IEH) for the next 3 and 6 months of 133.7 and 157.7, respectively, higher than the previous period. Respondents estimated that the price increase was influenced by disruption in the distribution of goods and services in line with the arrival of the rainy season.
Company News
IHSG Updates
JCI slipped by -1.81% to 5,149.38 on Wednesday (09/09) followed by net foreign sell reaching IDR630.38 billion. JCI drop along with the Regional Asia indices due to the fall on China's Consumer Price Index which stood at 2.4 in August 2020 from 2.7 in the same period last year. Subsequently, Indonesia's retail sales is still decreasing despite the thinning decline, these sentiments has brought the market down. Meanwhile, the Rupiah exchange rate was weakening at IDR14,799.We estimate JCI will move in the range of 5,119-5,230 while waiting for Balance of Trade data release. Today's recommendation: WSBP, ADRO, BBRI, SMRA.
Corporate Action
IPO: ROCK (IDR1.340/share), HOMI (IDR380/share)
RUPS: JAYA
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