Market Recap
JCI lowered yesterday amid the net buy transaction of IDR378 billion. Investors digested September’s deflation of 0.18%. Top Losers: Basic Industry (-2.37%), Agriculture (-1.49%), Consumer (-1.46%).

Global markets closed in positive territory yesterday. The U.S. and Canada succeeded to reach trade deal through USMCA agreement. On the other side, the decline in the Caixin (Markit Manufacturing Purchasing Index) of September impacted on the Asia market.

Today’s Outlook: The U.S. – Canada Trade Deal
Today we estimate JCI to rally with the support range of 5912-5919 and resistance range of 5982-5990. The positive sentiment comes from the U.S. and Canada agreeing to a deal replacing the North American Free Trade Agreement. The U.S. previously succeeded to reach a deal with Mexico. The new deal spurred the rally in not only the global markets but also the global crude prices. Indeed, it also subdued the concerns about the sluggish demand for crude.

From the domestic outlook, the decline in JCI was not entwined with net sell by foreign investors as they still posted net buy. Furthermore, the September’s inflation lower than 3% likely underpins the stable rupiah and spurs the improvement in Indonesia’s forex reserves.

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