Market Recap
JCI moved at sluggish pace yesterday amid BI’s stance of maintaining its benchmark rate unchanged. Its sluggish pace was followed the regional market movement. Top Losers: Infrastructure (-2.01%), Mining (-1.40%), Agriculture (-0.99%).

Global bourses finished at the negative territory. 3Q18’s earnings of some companies disappointing investors led the U.S. markets to lower. Meanwhile, European bourses posted losses, led by Germany’s DAX index, exposed to slow global demand. Global investors still fears of the geopolitical issue and impacts arising from unresolved disputes between the U.S. – China.

Today’s Outlook: Crude Prices Tumble
We estimate JCI to rally with the support range of 5746-5756 and resistance range of 5837-5848. The positive sentiment comes from the significant decline in global crude prices. The decline of 4.22% in crude prices occurred after Saudi Arabia’ government stated its commitment to hiking production ceasing the fears of sanctions against Iran. The decline in crude prices lowered the pressure on Indonesia’s current account deficit.

On the other side, investors still keep their wary eyes on 3Q18’s seasonal earning. Today BBRI will release 3Q18’s earnings. Of note, other two state-owned banks, namely BBNI and BMRI have released their 3Q18’s earnings pursuant to investors’ projection.

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