JCI Gave up Gains
JCI’s moves on Monday of Nov. 12 were weak as Trump tweeted that the US-China partial deal will take place only if it stands for the US benefits. Trump’s tweet feared investors as they pulled their capital from emerging markets, including JCI. Apart from the global sentiments, Jokowi’s order for banks to cut their loan rates was a drag on JCI’s moves on Monday (11/11). It is estimated that declines in loan rates suppress state-owned banks more than private banks. After posting two-day losing streak, JCI continued to be bearish on Wednesday (13/11). Wednesday’s bearish moves were triggered by state-owned banks’ capital injection to PT Bank Muamalat Indonesia Tbk and PT Asuransi Jiwasraya (Persero) to boost their liquidity. On Friday (11/15), Statistics Indonesia released Oct. trade balance posting surplus of USD161.3 million so that JCI rebound on Friday (11/15).
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