Massive profit-taking by foreign investors and the banking sector made worse performance weakened JCI on Friday. Top Losers: Basic Industry (-1.89%), Finance (-1.52%), Trade (-1.00%).
Ahead of G-20 meeting and the U.S. and China trade talks, global markets closed mixed on Friday. Meanwhile, Asian markets closed mixed due to the Bank of Korea’s monetary tightening. European markets finished lower amid investors fixating on Italy’s plan for inhibiting its 2019 trade deficits. Investors’ optimism on trade deals between the U.S. and China was attributable to the rally in the U.S. markets.
Today’s Outlook: Results of Trump and Xi Meeting
We estimate JCI to rally with the support range of 6030-6037 and the resistance range of 6107-6117. The major positive sentiment comes from the result of Trump and Xi Jinping’s last weekend talks. Trump postponed the hike in import tariffs on China’s products initially to take effect on January 1st, 2019. Besides, the two countries will negotiate trade issues within the next 90 days.
The result of the meeting results in a positive response, e.g. the rally in Asian markets, and the rupiah appreciation at the average of 14,200 per dollar. The backdrop is likely to result in a significant window dressing of December.
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