JCI Is Bearish
Bank Indonesia (BI) announced 2019’s current account deficit (CAD) of USD30.4 billion or equal to 2.72% of the total GDP narrower than USD30.6 billion or equal to 2.94% of 2018’s total GDP. Besides, Indonesia’s Balance of Payments (BoP) of 4Q19 also accounted for USD4.3 billion worth of surplus. These two positive macroeconomic data stimulated foreign investors’ appetite for investing in Indonesian stocks as JCI secured foreign inflows but remained unmoved from the red. The Fed Chair Jerome Powell’s semiannual testimony before Congress articulated the US economy to remain resilient against infectious coronaviruses to spill over global economies and assured the Fed’s patient stance of holding interest rates steady. That’s dovish emphasis muted rising prices of Comex gold futures contract. On Friday of Feb. 14, despite of foreign inflows, JCI still posted a slight decline.
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