Market Recap
JCI rallied yesterday, backed by the best performance posted by the banking sector, the rupiah’s robust exchange rate, the release of consumers’ confidence index, and the positive sentiment from the U.S. and China trade talks. Top Gainers: Agriculture (+1.95%), Infrastructure (+1.19%), Property (+1.10%).

Global investors keep their wary eyes on the trade talks between the U.S. and China from January 7th to January 8th, 2019. The trade talks underpinned the rally in Asia and the U.S. markets. In stark contrast, Europe markets closed lower because of investors’ jitters of a slowdown in the global economy, Brexit, and the U.S. government shutdown. The U.S. markets posted gains because Amazon’s stock and the energy sector made their best performance.

Today’s Outlook: USDIDR Strengthens by 1.3% to 14,000
Today, we estimate JCI to rally with the support range of 6185-6215 and the resistance range of 6355-6375. The positive sentiment comes from December’s forex reserves, climbing to its highest level of USD120 billion or increasing from USD117.2 billion in November 2018. December’s forex reserves were the highest figure since May 2018. December’s high forex reserves were backed by the success of Indonesian government in selling SUN with the USD denomination worth USD3 billion.

Indonesia is estimated to enjoy the lustrous emerging markets, backed by the robust rupiah and the high demand for SUN. Indonesian government successfully absorbed the funds of IDR28.25 trillion from the incoming bid of IDR55.27 at SUN auction dated 01/03. In fact, the government only set the indicative target of IDR15 trillion.

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