All three US stocks fell in a volatile trading day, with the Nasdaq leading the most significant decline of 1.68%, triggered by the Alphabet shares became the biggest drag that sank 7.7% after its new AI chatbot Bard delivered an incorrect answer in an online advertisement. Several mixed market sentiments, one of which came from the Federal Reserve officials on Wednesday adding to the cautious mood, stated that more interest rates rises are in the cards as the US central bank moves ahead with efforts to control inflation. The market expects two more 25 bps rate hikes by the middle of this year. Lastly, in addition to the current earnings season, investors also were digesting US President Joe Biden’s comments on his plan to raise taxes on share buybacks.

JCI was able to end Wednesday’s trade in positive territory, with a slight gain of 3.8 points, supported by positive sentiment from the Consumer Confidence Index, which rose to 123 (Jan.) from 119.9 last month, the highest since last August, supported by a sloping inflation rate. This data supported the previous report, as Indonesia’s Foreign Exchange Reserves (Jan.) fattened to USD139.4 billion, from USD137.2 billion in Dec; also the highest level in the last 11 months. Foreign buying interest was recorded to be increasingly eager to enter the Indonesian stock market, with yesterday’s Net Foreign Buy at 361.68 billion. Thus, foreign managed to save IDR2.44 trillion in net buying over the past week and reduced the negative YTD to an IDR574.38 billion minus. NHKSI RESEARCH considers that this short-term Bullish still has room for air, although it seems a bit hard to break through the 6955-6965 Resistance. Therefore, we suggest market participants to maintain the HOLD position and delay the Average Up; especially while waiting for other economic data to come out today, which is quite crucial for the global financial sector, such as Germany’s CPI (Jan.) and US Initial Jobless Claims.

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