JCI closed flat on Friday amid the rupiah depreciation, the lowest since 1998. Markets responded positively to the B20 mandatory. Top Losers: Misc. Industry (-2.45%), Property (-1.00%), Mining (-0.80%).
Global markets were sluggish on Friday along with the escalating tension of trade war. The escalation was triggered by Trump’ ahead move of addition tariff on China’s goods and the trade deal between the U.S. and Canada ended without a deal.
Today’s Outlook: Hike in Manufacture Activity
We estimate that today JCI rallied with the support range of 5975 and 5985 and resistance range of 6060-6077. The positive sentiment comes from the release of Indonesia’s PMI reaching 51.9 in August 2018. The figures were the highest since June 2016 and indicated that the domestic manufacture activity keeps accelerating. On the other side, investors await the release of August’s inflation figures. The inflation is estimated to be stable at the around 3.2%.
From the global outlook, the pressure comes from the updated trade negotiation between the US and Canada. The negotiation ended without a deal on Friday, 08/31/18, and will be continued during this week. Indeed, President Trump notified the deal to end in 90 days.
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