JCI’s Last Week Slight Hike
Trump holding off on new tariff of USD300 billion on Chinese goods and his decision to revise the ban on selling products to Chinese tech giant Huawei after the highly anticipated talks between Trump and Xi in the G-20 was a positive sentiment for JCI. The domestic sentiment of June’s 0.55% m-m inflation lower from May’s 0.68% m-m proved a positive sentiment for JCI. June’s benign inflation was attributable to declining inflation of volatile food as Ramadan and Idulfitri season came to end. Meanwhile, June’s modest PMI of 50.6 compared to May’s 51.6 due to June’s lagging production and sales impeded JCI’s movement. JCI was closed higher at 0.33% as KPU named Joko Widodo and Ma’ruf Amin as President and Vice President-elect. On the last week’s mid―days, most drivers for JCI’s movements were global sentiments. Markets were anxious about the greenback economy imposing tit-for-tat tariffs of USD4 billion on EU goods. They feared it becomes another series of US trade disputes with its trade partners. The fears slowed JCI. But, the following day, JCI was at higher close as the US trade deficits grew markets expectation of FFR cuts. On Friday (7/05), Bank Indonesia released June’s forex reserve of USD123.8 billion, increasing by USD3.5 billion. Last week, JCI closed higher at 6,373.
Download full report HERE.