Market Recap
JCI finished higher within 3 consecutive days after a steep tumble. The movement is backed by the rally in the rupiah’s exchange rate and the government’s stance to hike non-subsidized petroleum prices. Top Gainers: Consumer (+1.19%), Mining (+0.95%), Infrastructure (+0.86%).
The U.S. and European markets closed lower yesterday due to the massive net sales of tech. sector. Investors also concerned the growth in global economy and the trend in interest rate hikes. On the other side, Asia markets rallied after analysts predicted the renminbi potential to rally.
Today’s Outlook: Global Markets Tumble
We estimate JCI to move at sluggish pace at the support range of 5728-5739 and resistance range of 5835-5847. The negative sentiment comes from the steep tumble in the global markets. The Dow Jones index closed more than 3% due to investors’ jitters of the trend in the upbeat U.S. Treasury yield. This morning, Nikkei index lowered more than 3%. Indeed, the decline in the global market is estimated to continue further until Thursday. It is indicated by the decline in the Dow Futures index.
From the domestic outlook, the policy on hiking petroleum prices gets a serious consideration. Pertamina has hiked non-subsidized petroleum prices; indeed, the government has prepared the scheme of hiking subsidized petroleum prices even though it was finally canceled.
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