JCI Snapped Lower
JCI was in the red zone in the start of last week. On Monday’s trading (09/16), JCI gave up gains as consumer stocks tumbled on grounds of the hike of 23% on cigarette excise tax and 35% on cigarettes retail selling price. GGRM and HMSP hit hardest by the tax hike tumbled to 20.64% and 18.21%, respectively. Fears of the cigarette makers’ tumbling path ahead, foreign investors pulled their funds of IDR538 billion out from JCI. The domestic hiccup in JCI’s Monday moves was exacerbated by geopolitical turmoil arising from the attack on Saudi Aramco’s two oil facilities. The attack sent crude oil prices to skyrocket and escalated the proxy war between Iran and Saudi Arabia, with the possibility of the US to drag in. JCI’s two-day rebounding streak was payback for Monday’s tepid close. FOMC’s two-day meeting on Sept. 18-19 agreed to cut FFR by 25 bps to 1.75%-2.00%, as widely anticipated. That proved a boost for JCI rallying
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