JCI rebound yesterday after 5-day decline. The rupiah’s exchange rate for the U.S. dollar topped 15,200. Top Gainers: Consumer (+2.13%), Basic Industry (+0.57%), Finance (+0.49%).
Most of the global market finished in the negative territory yesterday as the Fed’s rate rose and People’s Bank of China cut the minimum banking reserves requirements. The European stock market was affected by Italy’s unchanged current spending plans.
Today’s Outlook: Revision by IMF
We forecast that today JCI will move at a sluggish pace with the support range of 5706-5715 and resistance range of 5781-5794. The negative sentiment comes from IMF’s revision to the global economic growth. IMF forecasted that 2018’s global economic growth likely settles at 3.7%, lower than the early estimate of 3.9%. The correction was underlined by the U.S. import tariffs on China’s goods. Indeed, it also cut the emerging economies’ growth.
On the domestic outlook, the positive sentiment comes from August’s retail sales growing by 6.1% y-y, quite higher than July’s growth of 2.9% y-y. The acceleration was backed by the high demand amid the agenda for Asian Games and Independence Day.
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