Market Recap
JCI notched higher yesterday backed by the financial sector. The rally occurred amid the slight rupiah depreciation and foreign net sell. Top Gainers: Misc. Industry (+2.12%), Basic Industry (+1.58%), Finance (+1.09%).
The U.S. and Asia stock markets finished mixed on Tuesday, 10/09/18. Investors digested the hike in 10-year Treasury Note and the stance of People’s Bank of China. On the other side, European markets finished higher amid the escalating political tension between Italy’s government and European Union.
Today’s Outlook: Corrections to Dollar
We estimate that today JCI will rally with the support range of 5756-5762 and resistance range of 5835-5847. The positive sentiment comes from the corrections to the U.S. dollar index. The correction occurred after the decline in the U.S. Treasury bond yield after posting massive hikes within recent days.
On the other side, the positive sentiment comes from the revision of global economy by IMF. Although IMF cuts the estimated global economic growth to 3.7%, it stated that Indonesia’s economic growth is capable to hit 5.1%. The estimated growth in Indonesia’s economy is better than its emerging economies’ peers such as Argentina, Brazil, and Turkey whose economic growth is heavily cut by IMF.
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