Market Recap
JCI strengthened further yesterday, led by the financial sector. Foreign investors also posted net buy of IDR1.5 trillion. Top Gainers: Agriculture (+2.23%), Misc. Industry (+2.14%), Finance (+1.93%).

The U.S. and European bourses snapped higher yesterday on the back of 3Q18’s robust earnings, easing investors’ worries about unresolved trade dispute between the U.S. and China. Asia bourses surged amid China’s low PMI and Bank of Japan’s stance of leaving its benchmark rate unchanged.

Today’s Outlook: Sliding Crude Prices
We estimate JCI to rally further with the support range of 5790-5797 and resistance range of 5890-5905. Today investors keep their eyes on October’s inflation. Inflation will settle at around 3% y-y albeit the estimate of October’s higher inflation.

From the global outlook, the positive sentiment comes from the decline in global crude prices marked by the decline in WTI’s benchmark crude prices to USD65.3. The decline in crude prices eases investors’ jitters of Indonesia’s widening external deficit. On the other side, global markets reigning in rally mood escalate foreign investors’ confidence of posting net buy.

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