Market Recap
JCI closed lower on Friday, 10/05/18, along with the rupiah depreciated further. The transaction of net foreign sell reached IDR1.26 trillion. Top Losers: Property (-1.58%), Misc. Industry (-1.34%), Infrastructure (-1.15%).

The global market finished at the sluggish territory. Investors concerned about the U.S. 10-year Treasury note yield touched its highest. Besides, the market also digested the release of the U.S. job data. On the other side, the tech. sector in Asia market plummeted as China was accused of presenting spy chips in hardware.

Today’s Outlook: Correction to Crude Prices
We estimate that today JCI rallies with the support range of 5698-5706 and resistance range of 5787-5798. The positive sentiment comes from the correction to the global crude prices. The backdrop occurred after the U.S. government planned to consider the exception to sanctions against Iran in next month. Indeed, the backdrop is likely to subdue investors’ jitters on Indonesia’s trade balance deficit widening.

On the other side, the positive sentiment stems from China’s stance of cutting the minimum banking reserve requirements with a view to boosting China’s economic growth. Today investors await the release of retail sales data marking a stable growth of 3%.

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