All three of Wall Street’s major indexes managed to post gains on Monday (27/03/23), in line with markets’ relief sentiment after First Citizens BancShares agreed to purchase the remaining assets, deposits, and loans from the collapsed Silicon Valley Bank, for USD 72 billion. Another breeze of fresh air came from the US government, which might begin to explore the Federal Reserve expanding its lending facility to regional banks. On the other hand, a stutter in tech kept the sector to stay in positive territory after Treasury yields surged after Federal Reserve Bank of St. Louis President comments the prospect of higher rates at 5.75% this year when many in the market bet on cuts later this year. From the Europe, the German Ifo Business Climate Index (Mar.) data release showed confidence in economic conditions by rising to 93.3 (higher than forecast & previous at around 91). Later tonight at 21.00 Western Indonesian Time (WIB), US Consumer Confidence (Mar.) will be monitored, as it is expected to weaken slightly to 101 (from previous position 102.9).
JCI kicked off the week with a decline of 53.32 points/-0.79% to 6708.93 triggered by concerns over the global financial system. However, foreign net buy captured IDR 115 billion on Monday trading; bringing the Foreign Net Buy position in the last month to IDR 3.56 trillion. Technically, JCI pullback is very understandable as there is a short-term downtrend Resistance right at the 6772.6 High area (up to around 6810). NHKSI RESEARCH expects today’s selling pressure will not be as strong as yesterday but there is a possibility of testing the MA10 Support at 6685-6680; so Advise Hold is the most appropriate to be implemented at this time.
Download full report HERE.