Market Recap
JCI notched lower yesterday. The net foreign buy of USD31.3 million failed to cushion the rupiah depreciated exchange rate, the lowest since 2015. Top Losers: Infrastructure (-1.55%), Basic Industry (-1.04%), Consumer (-0.95%).
The global market were bearish yesterday amid the progress of NAFTA talk. The U.S. market also notched lower ahead of Trump’s decision in favor of the additional tariff import of USD200 billion on China’s products.
Today’s Outlook: Trump’s Stances
Today we estimate JCI to be bearish with the support range of 5961-5966 and resistance range of 6040-6055. The negative sentiments re-arise from the jitters of the U.S. and China trade war triggered by President Trump’s favour with the additional tariffs of USD200 billion imposed on China’s good. The tariff will take into effective in next week. Besides, Trump also rejected the tariff cut proposed by European Union; he even threatened with the U.S. exclusion from WTO.
Trump’s stances were attributable to rupiah depreciation. However, investors needs to eye on the trend of recent-day foreign buy net position in the Indonesia’s stocks market. Indeed, investors can reap benefit from today’s corrections to accumulate prospective stocks.
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