US stocks rallied on Wednesday (29/03/23), with all three major indexes ending up at least 1%; the Nasdaq led the way with a 1.8% gain on the back of an upbeat outlooks from Micron Technology, which drove a surge in share prices of other chipmakers. Similar to the Indonesian market, earnings sentiment still colored the trading atmosphere, helped by the strong performance of issuers. Additionally, a macroeconomic data showed that Pending Home Sales (Feb.) were higher than expected at 2.3%, increased by 0.8% (though considerably down from Jan. at 8.1%). On the other hand, the Gfk German Consumer Climate (Apr.) data fell deeper than expected -29.2 to -29.5 (also lower than previous -30.6), indicating fairly pessimistic consumer confidence over future economic activity. Moreover, more important readings from the Europe & the US will be awaited today: German CPI (Mar.), US 4Q22 GDP, as well as Initial Jobless Claims which is predicted to come in at 196k (still growing from previous week’s 191k). Meanwhile, global oil prices have the potential to strengthen significantly amid the supply shortages threat as oil inventories fell beyond expectations by 7.489 million barrels, compared to forecasts of just under 1 million barrels.

JCI continued its northward journey by 79.11 points/+1.17 % to 6839.44, its highest level in 3 weeks; as anxiety about the global financial system fades. The JCI gain was supported by high foreign buying interest at IDR 1.64 trillion (regular market). NHKSI RESEARCH estimates that the bullish tone will still be felt today, mainly due to continued positive sentiment from regional markets, as EIDO recorded a plus 1.85%. JCI will test the crucial Resistance at 6870; which, if broken, will bring JCI to 6900. Indonesian capital market investors/traders are allowed to add portfolio positions as market interest improves.

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