Indonesian Market Recap
JCI notched lower yesterday amid the release of lower-than-estimate financial statements. The Indonesian government also cancel to revoke DMO. Top Losers: Infrastructure (-4.82%), Mining (-2.72%), Property (-2.20%).
Today’s Outlook: DMO to Be Exercise Further
We estimate JCI to move at modest pace at the support range of 5885-5900 and resistance range of 6000-6015. President Joko Widodo set a cabinet meeting dated Tuesday, 07/31/18, to be held at Bogor Palace. The meeting resulted in a decision of further implementation of domestic market (DMO) pursuant to the prior regulation. Indeed, the Indonesian government likely curbs the domestic coal prices at USD70/ton. The international coal prices hike by 33% (USD91/ton) since April 2018 and soar to USD120/ton in July 2018.
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