Tech stocks MegaCaps rebounded, as yields on UST10Y returned below the psychological level 4%, making Nasdaq lead Wall Street’s gains or close up to 2%. Interest rate sensitive tech stocks rose, along with the UST market, as the UK30Y Gilts yield fell by more than 100Bps, or after the previous day the UK30Y Gilts approached the psychological level of 2% yield. The UK bond market strengthened amid the discourse of the BoE’s QE worth GBP65Bn, or the BoE intervened to buy UK30Y Gilts worth GBP5Bn per day until 14 October. Apart from technology stocks, consumer stocks also appreciated, supported by US Retail Inventories data in August MoM which grew 1.4% (Vs. Jul. 1.1%).
JCI has the potential to experience a limited Technical Rebound, as the Rupiah weakening trend approaches the level of USD15,300/USD. Wall Street’s appreciation can be a positive catalyst, after the JCI failed to close above the psychological level of 7,100. Yesterday, the JCI fell 35 points to a level of 7,077, with Basic Materials, Transportation & Logistics, Industrial and Energy leading sectoral declines. Meanwhile, the rupiah exchange rate touched the level of IDR15,262/USD yesterday, or closed down nearly 1% on a daily basis. NHKSI Research projects that the JCI today is Anticipate technical rebound or Limited Upside potential, with Support levels: 7,070-7,040 / 7,000 and 7,110 / 7,160- 7,180 / 7,200-7,225 / 7,250.
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