Market Recap
Aligning with the regional markets, JCI closed higher on Friday, 01/11/19, backed by the rupiah appreciation, net foreign buy, and the basic industry sector. Top Gainers: Basic Industry (+1.48%), Misc. Industry (+1.29%), Infrastructure (+1.15%).

The global stock markets ended Friday’s trading session in a mixed state. Investors focused on China’s lackluster economic data and the shutdown in the U.S. administration. Asia markets rallied along with the positive progress of the U.S. and China trade war. In addition, Europe market ended mixed in relation to the Brexit progress; the U.S. markets closed flat along with the profit taking act.

Today’s Outlook: Exuberant Emerging Market
We estimate that today, JCI will rally with the support range of 6250-6290 and resistance range of 6360-6400. Last week, MSCI emerging market stocks index rallied by 3.8%, backed by the positive sentiment of the trade deal between the U.S. and China. Besides, the Fed also signaled that it will not promptly tighten its monetary policy. The stance is estimated to continue further until this week when investors keep their eyes on China’s trade balance.

In the domestic market, investors are estimated to digest the result of Bank Indonesia (BI) Board of Governors Meeting dated Thursday, 01/17/19. The meeting discusses its benchmark rate estimated to be stable at 6.0%.

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