Wall Street index slumped more than 1% on Friday as investors stepped out on concerns about the health of US banks following the collapse of Silicon Valley Bank. The heated issue dragged all three US indexes down further than the previous week, where the S&P500’s minus 4.6% as week, a biggest weekly decline since September, eroding its YTD gain to just 0.6%. THe Dow Jones lost 4.4% while the Nasdaq also posted a negative performance of 4.7% this week, although the figure is still a 6% plus YTD. The much-awaited labor data was mixed last Friday, where there was still greater-than-expected employment growth in Feb., along with an increase in average hourly wages that slowed to 0.2%; while the unemployment rate also rose to 3.6%. The economic data was actually able to ease some worries about the prospect of a 50 bps rate hike at next week’s FOMC Meeting, following Jerome Powell’s hawkish remarks last week.
JCI ended last week in negative territory, down 34.5 points/0.51% to 6765.3; although on a weekly basis managed to capture a Net Foreign Buy of IDR 642.93 billion, solidifying its YTD position at IDR 3.26 trillion. Technically, this weakness makes perfect sense as investors refrained from breaking MA10/6812 Resistance while waiting for the release of important US labor data in the evening. In response to the emerging market reaction, NHKSI RESEARCH estimates that this short-term downtrend is still not over. The important Support areas of concern today are 6740-6730; up to 6710- 6690. Be alert if this level is broken (on Closing position), as it will drag JCI to consolidate deeper towards 6650.
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