Indonesian Market Recap
JCI ended at a steep plunge as the current account deficit ballooned to USD8 billion. Top Losers: Mining (-4.98%), Finance (-4.16%), Basic Industry (-4.03%).
Today’s Outlook: Concerted Efforts to Recover Forex Reserves
We estimate JCI to move at modest pace with the support range of 5807-5815 and resistance range of 5885-5900. The Indonesia government holds a Cabinet meeting with the agenda for the meeting of drafting policies strengthening forex reserves. The government makes a concerted efforts to avoid from looming domino effect by beefing up its forex reserves despite of the pressure on current trade balance and rupiah depreciation. Investors also need to keep their eye on July’s trade balance data to be release on 08/15/18.
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