Aligning with the regional stock markets, JCI closed lower in the first trading day of 2019 as the basic industry sector and mining sector made the worse performance. Top Losers: Mining (-1.61%), Basic Industry (-1.04%), Agriculture (-0.80%).
The global markets were hampered by China’s lagging manufacture: the first sliding within the last 19 months. China’s murky manufacture fueled the fears of a slowdown in the global economy. European markets closed mixed due to Europe’s manufacturing data in December. The U.S. markets closed slightly lower after volatile session.
Today’s Outlook: The First SUN Auction in 2019
Today, we estimate that JCI moves at a modest pace with the support range of 6120-6145 and the resistance range 6215-6230. The negative sentiment derives from the US dollar index strengthening to 0.9%% on the second day of 2019. Investors will take careful consideration to the auction of Indonesia government’s bonds (SUN). On Thursday, 01/04/18, the government of Indonesia will perform the first SUN auction in 2019. In 2018, the yields of SUN with the 10-year tenor hiked by 1.8%. The yields of SUN with 10-year tenors settling at 8.05% allure investors targeting much higher yields. The indicative target set for Thursday’s auction is IDR15 trillion with the maximum target of IDR30 trillion. The proceeds of the auction will reflect investors’ risk appetite for emerging markets, particularly Indonesia.
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