Dow Jones and S&P500 resumed weakness with a range of 0.1%-0.3%, while the Nasdaq posted a 0.5% gain, as investors weighed up a sharp drop in Treasury yields amid bets of a less aggressive Federal Reserve as the Silicon Valley Bank turmoil shook the US banking sector. As for SVB, the US central bank stepped to rescue by ensuring that depositors’ funds were safe in order to maintain investor trust. Market participants begin to bet that the Fed is likely to impose a 25 bps rate hike at the March FOMC Meeting; even Goldman Sachs estimates that the Fed isn’t likely to hike at all in March, with a probability of 47% according to the Fed Rate Monitor Tool. The Fed also launched a new funding program offering loans with a maximum tenor of 1 year. The support from the Fed failed to stem the turmoil in bank stocks, in contrast to the rally of stocks in the technology sector underpinned by the fall in Treasury yields.

JCI moved volatile but managed to post a gain of 21.65 points/+0.32%, where the High position of 6812.87 attempted to break the first Resistance/MA10, but the closing position was lowered to 6786.96. Foreign Net Buy was recorded at IDR 29.49 billion. Most other Asian stock markets also moved in positive territory on Monday (13/03/23) as market participants weighed how much of a challenge the US banking sector is facing. At the same time, the Chinese government promised economic support in the form of easier policies to achieve annual economic targets. NHKSI RESEARCH is quite optimistic that the JCI gains can continue today with a focus on breaking MA10/6806 Resistance, up to 6820-6840, which, if the range is broken, then the probability is it will break this short-term downtrend.

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