Indonesian Market Recap
JCI tumbled sharply amid rupiah depreciated further. Top Losers: Basic Industry (-3.89%), Misc Industries (-3.06%), Infrastructure (-2.59%).
Today’s Outlook: Threat to Economic Growth
We estimate that JCI moves at modest pace at the support range of 5574-5580 and resistance range of 5692-5697. Investors projects the potential for a lagging economy stemming from the further depreciated rupiah. The government’s plan for reviewing import activity with a view to maintain deficit in current account likely results in stunting economic growth. On the other side, to figure out BI’s concerted attempts at rupiah appreciation, investors are awaiting the release of forex reserves on this Friday.
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