Market Recap
JCI finished on a low note yesterday amid the upbeat price of global crude and the rupiah depreciation against USD topping 15,000. Top Losers: Basic Industry (-2.98%), Misc. Industry (-1.70%), Agriculture (-1.39%).

The global markets were in sluggish territories as the worsening geopolitical dispute between the U.S. and China. The political uncertainty in Italy impacted on European stocks. On the other hand, investors also digested the North America’s trade relation.

Today’s Outlook: Expectancy of Crude Supply
We estimate that today JCI will rally with the support range of 5836-5845 and resistance range of 5925-5931. The positive sentiments comes from the rally in global crude’s prices halted. The crude prices made a significant rally as investors concerned about the U.S. sanctions on Iran taking into effect on November 4th, 2018. Investors initially feared that the supply of global crude likely depletes, yet they now digest that the stable supply is possible due to the increment in the U.S., Russia, and OPEC’s crude supplies.

From the domestic outlook, the Indonesia government endeavors to cut tax imposed on sovereign bonds ownership. The policy is crucial as it inevitably allures foreign inflows and proves a boon for Bank Indonesia to cushion the rupiah depreciation.

Download full report HERE.