Market Recap
JCI closed lower yesterday as rupiah was depreciated further. Top Losers: Basic Industry (-2.45%), Infrastructure (-1.90%), Mining (-1.33%).
The global markets were bearish yesterday amid the escalating tension arising from the U.S. against China and Canada. Besides, investors also concerned about the domino effect of financial crisis sweeping emerging countries.
Today’s Outlook: : Effects of Weakening Rupiah
We estimate that today JCI likely moves at a lagging pace with the support range 5851-5861 and resistance range of 5934-5941. The major negative sentiment comes from the further trend of depreciated rupiah standing near to its psychology level of 15,000 per dollar. The trend causes the Indonesian government to postpone the 35,000 MW electricity power plant project with a view to curbing significant amount of imports. The government’s stance causes investors to concern about economic growth disruptions.
Meanwhile, from the global outlook, the pressure arises from the strengthening greenback. The global markets are still sluggish amid the escalating-ever tension arising from global trade war after the trade negotiation between the U.S. and Canada ending without a deal and the U.S. additional import tariff of USD200 billion on China’s goods.
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