Market Recap
Moving at sluggish pace during first session, JCI finished flat yesterday. It failed to follow the rally posted by regional stock markets. Top Gainers: Infrastructure (+1.69%), Property (+0.47%), Mining (+0.44%).
The global markets finished mixed yesterday amid the release of 3Q18’s earnings. The U.S. market closed mixed because fears of soaring mortgage rates capping loan growth caused banking to lead flow financial shares. Asia markets rallied further backed by China’s stock strengthening by more than 4%.
Today’s Outlook: Expectancy of Benchmark Rate
Today we estimate JCI to rally with the support range of 5810-5816 and resistance range of 5903-5915. The positive sentiment comes ahead of the end of BI’s Board of Governors Meeting held today. Investors estimate that BI is likely to maintain its benchmark rates after raising its benchmark rates by 150 bps since May 2018. It held its benchmark rate stable in October because the pressure on the Rupiah subdued.
On the other side, the pressure from the global circumstance comes from the geopolitical turmoil in Saudi Arabia. However, JCI posting no significant decline shows that the global volatility is currently not major concern.
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