Global Market Highlight
DJIA increased by +0.90% on Tuesday (10/11) followed by weakening S&P 500 (-0.14%) and Nasdaq (-1.37%). Stocks movement were limited due to corrections in technology stocks caused by profit taking. On the other hand, stocks in the aviation sector rose significantly, boosted by the good news from Pfizer's vaccine progress. Market participants consider that economic improvement has occurred and even exceeded projections. Currently, investors are waiting for the continued development of vaccines amid the increase in Covid-19 cases around the world. Meanwhile, data on the number of US job vacancies in September increased to 6.4 million (previously 6.3 million). However, this figure is still below consensus (6.5 million). This shows that not all sectors have shown recovery. Moreover, the market will look forward to several data releases today, such as: 1) US Veterans Day; 2) US MBA Mortgage Application; 3) Eurozone ECB President Lagarde Speech.
Domestic Update
The Ministry of Finance reiterated that the National Economic Recovery (PEN) budget allocation will continue in 2021 amounting to IDR372 trillion to handle health and the PEN stimulus. As for the end of October 2020, the total PEN distribution as a whole had reached 52.8% or around IDR367 trillion of the total budget of IDR695.2 trillion. This is a fairly large number and the PEN scheme is finalized around August so the absorption is relatively fast.
Company News
IHSG Updates
JCI soared by +1.99% to 5,462.74 on Tuesday (10/11) followed by net foreign buy reaching IDR2.25 trillion. JCI kept rising boosted by the foreign inflow while this is in line with the strengthening on the global and regional Asia indices. The increase on JCI was supported by finance, miscellaneous and basic industry sector. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,058. We estimate JCI will move in the range of 5,250 – 5,570 while waiting for current account data release. Today's recommendation: BRPT, DMAS, LSIP, ACES.
Corporate Action
RUPS: PURE, BRMS
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