Following the movement of the regional market, JCI closed lower yesterday as it was suppressed by the banking sector amid the rupiah depreciation to 14,400. Top Losers: Misc. Industry (-1.71%), Property (-0.78%), Mining (-0.68%).
Global markets continued to lag yesterday amid investors’ jitters of the murky outlook of economic activities in 2019. Prior-day tumble in the U.S. markets affected the movement of Asia and European markets. The massive selling in banking sector suppressed Asian markets. On the other side, the U.S. markets were off due to a National Day of Mourning in honor of Bush.
Today’s Outlook: Ahead of OPEC Meeting
Today we estimate JCI to be sluggish at the support range of 6056-6055 and the resistance range of 6157-6165. The global markets focus on OPEC Meeting. The global crude prices tumbled dramatically within recent months. The backdrop is potential for reduction in crude production by OPEC. On the other side, Huawei’s officer arrested by Canada’s authority raised concerns about the headwinds facing the progress trade deals between the U.S. and China.
The rupiah is depreciated further within recent days. The possible rebound in crude prices due to the production cut by OPEC will depreciate the rupiah further. Of note, the rupiah strengthened in recent months due to the tumble in crude prices.
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