JCI snapped higher yesterday amid the massive foreign net sell of USD64.9 million. Investors put their appreciation for the government’s concerted endeavor to control rupiah’s exchange rate. Top Gainers: Basic Industry (+2.46%), Finance (+2.00%), Consumer (+1.99%).
The global markets lagged after the tech. sector recorded a steep loss. Meanwhile, investors keep a wary eye on the trade deal between the U.S. and Canada and the U.S. ahead stance of tariff imposed on China’s good. In fact, they had major concerns for the financial crisis sweeping emerging economies.
Today’s Outlook: : Global Trade War Spreads
We estimate that today JCI will lag with the support range of 5716-5728 and resistance range of 5799-5807. The negative sentiment comes from the escalating tension of global trade war. President Trump stated that now the U.S. focuses on narrowing the trade balance deficit with Japan. Thus, the U.S. likely imposes the import tariff on Japan’s goods. The backdrop causes Asia markets to be sluggish this morning.
From the domestic outlook, investors keep their wary eyes on the August’s forex reserves declining by USD13.7 billion since hitting its highest level of USD132.0 billion. The decline is near to the decline of USD15.3 billion in February-November 2015.
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