Global markets remained in positive territory amid the US stock market holiday earlier this week. As for today, a series of economic data that concerns global financial markets, most of which are Purchasing Manager Index from Japan, France, Germany, the Eurozone, the UK, and the US. In addition, the German ZEW Economic Sentiment Index will provide a view of economic conditions for the next six months, surveyed from 350 German institutional investors and analysts. Lastly, the US Existing Home Sales (Jan.) will also be monitored from the previous figure of 4.02 million. It is now expected to rise to 4.1 million, providing an insight into the US housing market and an indicator of general economic strength. From the East, China kept its lending rate at 3.65% for the 6th consecutive month. The Dollar Index traded around 104, remaining steady as robust US economic data is expected to keep the Fed hawkish.
JCI closed flat after a volatile trading session but managed to earn a foreign Net Buy of IDR 475.6 billion. Bank Indonesia recorded that the current account surplus in 4Q22 amounted to USD 4.3 billion or 1.3% of GDP, a slight slowdown from 3Q22 of USD 4.5 billion; the recorded amount was supported by non-oil and gas trade balance surplus and high export commodity prices. Thus, the current account surplus throughout 2022 rose significantly to USD13.2 billion (1% of GDP) compared to the 2021 surplus of USD3.5 billion. (0.3% of GDP). NHKSI RESEARCH considers that the current JCI position is still relatively safe above MA20/6890 Support, although it is yet to move above MA10 or 6910 level; therefore, the best advice for investors in this Sideways period is to Hold all positions and Average Up gradually when JCI starts to move above 6900 level again.
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