JCI’s Mixed Movement
Last week, JCI was loomed by negative sentiments and cheered positive sentiments. China flew into a rage as the US boycott on Huawei and jeopardized Apple Inc, assembling plants of which mostly are situated in China. Google retaliated against China by a temporary halt to any business activities with Huawei. On May 22, soon after the US lenient trade boycott on Huawei, Google was willing to give Huawei a 90-day-license for software updates, protecting Huawei’s users from any security risks. The tit-for-tat battles between the world’s two giant economies shatter optimism for near-future trade negotiation. In the domestic backdrop, the result of 2019’s announced by the General Elections Commission (KPU) in the early day of May 21 named Joko Widodo–KH Ma’ruf Amin as Indonesia’s President and Vice President. It was positive catalyst for JCI’s bullish close at 1.38% to 5,970 as investors were optimistic about Jokowi’s administration. But, May 22 riot—adding to the evidence of Indonesia’s wobbly economic and political circumstances—rattled markets and left JCI at intraday low of 0.20% to 5,939. The riot was ignited by the opponent party’s disappointment to the election result. Foreign inflows of IDR702 billion, stemming from roughly IDR993 billion worth of crossing shares over PT Multistrada Arah Sarana Tbk (MASA) in the negotiation market, eased JCI bruised by 22-May riot. Although on Friday (05/24) JCI was solid at 6,057.35 due to conducive political circumstance, foreign investors worrying about trade war and middle east turmoil fled their money from JCI. Although on Friday (05/24) JCI was solid at 6,057.35 due to conducive political circumstance, foreign investors worrying about trade war and middle east turmoil fled their money from JCI.
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