Market Recap
JCI closed higher backed by the consumer sector, yet weakening rupiah exchange rate for dollar suppressed JCI in I trading session. Top Gainers: Agriculture (+2.27%), Misc. Industry (+1.35%), Consumer (+1.31%).
The U.S. stocks rallied further and closed at its highest level. Meanwhile, the global stocks closed mixed as Canada rejoined NAFTA talk. European stocks were also backed by the rally in pound attributable to partnership offered to Britain by European Union.
Today’s Outlook: NAFTA Agreement
Today we estimate JCI to rally with the support range of 6025-6033 and resistance range of 6103-6160. The positive sentiment comes from the conducive global stocks movement amid the U.S. and Canada trade negotiation. Based on the updated news, the U.S. and Canada will reach trade agreement on Friday, August 31st at the latest. The backdrop allows the U.S., Canada, and Mexico to succeed in entering to new NAFTA agreement.
From domestic outlook, the positive sentiment comes from McKinsey’s research stating that the online e-commerce market in Indonesia is projected to grow from USD8 billion in 2017 to USD55-65 billion in 2022. The growth is inevitably a positive contribution for the acceleration in GDP growth.
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