Market Recap
JCI closed at sluggish state as the worse performance by the basic industry, the rupiah depreciation, and the net foreign sell. Top Losers: Basic Industry (-2.76%), Infrastructure (-1.14%), Property (-0.91%).
Most of the global markets were in bullish territory yesterday. The U.S. markets ended mixes as China lowered tariffs of 15% on the U.S. imported cars and the dispute on the U.S.-Mexico security border. The subdued trade war tension also backed the rally in the European market, particularly the basic industry sector. The Asian markets closed mixed amid the resignation of BOI Governor.
Today’s Outlook: Digest the U.S. and China Trade Deals
We estimate JCI to rally with the support range of 6035-6042 and the resistance range of 6117-6122. The positive sentiment comes from the updated trade relation between the U.S. and China. China is reported to cut the tariffs on the U.S. automotive from 40% to 15%. It indicates the progress of the trade deals between the world’s two largest economies after both countries’ presidents met during G-20.
From the domestic outlook, the rupiah depreciation in recent days is forecasted to halt. The rupiah weakens from 12,200 to 14,600 per USD. The better trade deals between the U.S. and China will strengthen the rupiah.
Download full report HERE.
