Indonesian Market Recap
JCI ended on a low note yesterday. Investors performed profit taking as China recorded the 2Q18’s lagging economic growth. Top Losers: Infrastructure (-1.47%), Misc. Industries (-1.36%), Property (-1.25%).
Today’s Outlook: Lagging Growth in China’s Economy Breeds Pressure
We estimate JCI to move at a modest pace with the support range of 5832-5839 and resistance range of 5932-5942. The pressure stems from China’s 2Q18 GDP growth sliding to 6.7% lower than the estimated growth of 6.8%. Such deceleration ignites the jitters of heightening impact from U.S.-China trade war. On the other side, investors eye on the 2Q18’s corporate earnings season within this week. It is estimated that the 2Q18’s corporate profits snap higher due to Eid Mubarak holiday period.
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