Today’s Outlook:
• The Dow Jones and others closed in the green on Friday (08/09/23) although not enough to prevent a weekly decline, as US Treasury yields climbed on growing concerns that the Fed will have to keep interest rates high for some time. The Energy sector led the gains in the stock market, gaining 1% as global crude oil prices continued their bullishness as Saudi Arabia & Russia plan to extend the production cut period until the end of the year. Apple shares accumulated a 6% decline over the past week as the threat of weakening demand from China ahead of next week’s iPhone 15 launch, as the Chinese government has banned the use of foreign brand mobile phones especially iPhones for government employees and in their state-owned companies, for national security reasons.
• China released their Inflation (Aug.) figures at the end of last week where CPI managed to grow by 0.1% yoy, coming out of -0.3% deflationary territory in the previous month. The monthly increase in consumer prices also managed to match the estimate of 0.3% mom, up slightly from July at 0.2%. However, PPI (Aug.) is still wallowing in negative territory of -3.0% yoy although this deflation has slowed from -4.4% in the previous month.
• The JCI has tested the psychological level of 7000 several times last week but finally closed down -0.76% on a weekly basis, along with a net foreign selling position of IDR 800s billion (RG market). Closing at 6924.78 puts JCI in a critical situation, at risk of breaking the short-term Uptrend Support and testing the strength of MA20 to hold further decline. NHKSI RESEARCH reminds investors/ traders to be prepared to reduce more positions if the consolidation continues today, with a threat to the next Support which is MA50 at 6870.
Company News
• TLKM : Business Entity Eyes Renewable Energy Investment
• GOTO : GoPay App Hits 1 Million Users
• BFIN : Targeting New Financing of IDR 21 Trillion by the End of 2023
Domestic & Global News
• Jokowi Lobbies Netherlands & France on Disbursement of IDR 300 T JETP Funds
• US, Saudi Arabia in Talks to Secure Metals in Africa, Wall Street Journal Reports
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