Market Recap
JCI finished on high note on Friday’s trading amid the rupiah depreciation. Foreign investors also posted the net buy of IDR1.13 trillion. Top Gainers: Basic Industry (+1.39%), Trade (+0.96%), Mining (+0.93%).

European and Asia markets finished at record highs dated Friday, 09/21/2018; in contrast, the U.S. finished on a mixed note. The backdrop in the global markets was attributable to investors’ concerns over the U.S and China trade war dissipating.

Today’s Outlook: Incentives by the Government
Today we estimate JCI to rally with the support range of 5919-5925 and resistance range of 5994-6013. The positive sentiment comes from the government plan to provide tax incentives to companies converting the U.S. dollar to rupiah. Furthermore, the government will review the tax policy set on government bonds; for example, the government will ease the tax governing the investment on government bonds. The government’s stance inevitably sends government bonds to consistently lower.

From the global outlook, the major Asia markets such as Japan, China, and South Korea which are off will spark minimum global sentiments. Global investors most likely keep their wary eyes on FOMC meeting to be held in the mid of this week; indeed, they also anticipate the U.S. tariff of China’s product taking into effect today.

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