Indonesian Market Recap
JCI ended flat, suppressed by the consumer sector. Investors digested June’s retail sales data released by Bank Indonesia. Top Gainers: Agriculture (+4.06%), Basic Industry (+1.60%), Trade (+0.80%).
Today’s Outlook: Anticipate Current Account Deficit
We estimate JCI to move at the modest pace with the support range of 6057-6035 and resistance range of 6135-6137. Pressures derive from June’s lagging retail sales of 2.3% lower than May’s retail sales of 8.3%. However, it is estimated that the lagging retail sales are only temporary due to the estimated surge in the end of 2018. On the other side, investors need to anticipate the deficit in the 2Q18’s current account. It is expected that the uptrend import likely widens the deficit.
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