Indonesian Market Recap
JCI rallied yesterday as the miscellaneous sector led amid the lower-than-estimate July’s inflation. Top Gainers: Misc. Industries (+3.84%), Basic Industries (+2.97%), Finance (+2.34%).
Today’s Outlook: Upbeat Core Inflation
We estimate that JCI will move higher with the support range of 5987-5994 and resistance range of 6081-6099. The positive sentiment comes from the release of July’s inflation: the core inflation in particular. Of note, the core inflation was at 2.8% y-y all-time high since January 2018. The backdrop indicates the recovery in the domestic consumption. In ahead years, the trend of upbeat domestic consumption likely continuous further and underpins acceleration in economy amid the varied agenda for sports and politics.
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