All three Wall Street indexes closed in negative territory on Friday (17/03/23), dragged down by falling financial sector stocks, ending a turbulent week dominated by the US & European banking crisis outbreak. US Consumer Sentiment data fell for the first time in four months. The preliminary reading from the University of Michigan for March, reporting consumers’ views on future economic conditions, fell to 63.4, from 67 in the previous month as the economy and inflationary pressures weakened. Eurozone CPI (Feb.) came in as expected at 8.5%, down slightly from 8.6% in the previous month. Meanwhile, from the Asian continent, amidst the rising trend of global interest rates, China loosened its monetary policy by lowering its benchmark interest rate by 25bps; to support its economic growth target of 5% this year.

JCI closed last week with a steady gain of 112 points (1.71%) to 6678, rebounding from the weekly critical support in the range of 6550-6500; supported by IDR 1.01trillion foreign buying interest, saving the weekly Foreign Net Buy value at IDR 254.38 billion. Today the market is expected to respond positively to UBS Group’s decision to acquire Credit Suisse for a USD 3.23 billion deal, bringing relief to global financial markets. Amid this optimism, NHKSI RESEARCH advises Indonesian capital market investors/traders to monitor the nearest Resistance level: MA10 / 6720, today, which, if broken, will pave the way for JCI to the following Targets, MA20 & MA50 in the range of 6780-6810. The gradual buying advice remains the wisest to do.

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