Market Recap
JCI closed lower yesterday, pressured by the profit taking act by local investors amid the trend of net foreign buy. Top Losers: Misc. Industry (-1.24%), Trade (-1.03%), Basic Industry (-0.81%).

The global markets closed lower yesterday as investors digested the lower-than-estimate China’s trade balance of December 2018 and the decline in global crude prices. Both facts heightened fears of the lagging economy and lower global demand. the European markets were constrained by the technology sector and the U.S. markets were sluggish along with kicking-off corporate earnings season.

Today’s Outlook: Await Release of Trade Balance
Today, we estimate JCI to rally with the support range of 6250-6290 and resistance range of 6360-6400. Today at 11:00 a.m., Statistics Indonesia announces December’s trade balance. Based on the economists’ consensus, Indonesia’s trade balance posts deficits of USD968 million, lower than that of USD2.05 billion in November. Lower deficits are positive sentiments for further foreign inflows to the domestic markets.

Indeed, foreign investors post the total net buy of IDR5.64 trillion within 11 consecutive days. Foreign investors’ optimism signs a risk-on mode for investing in Indonesia.

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