This week, investors are looking forward to the release of Trade Balance data which is projected to return to a surplus, and the BI 7DRRR which is projected to be maintained at 3.50%. In trading at the beginning of the week, the JCI will try to stay in the range of 6,900 – 7,000.
The benchmark series of Government Bonds (SUN) recorded a yield decrease of between 2.2 bps to 4.6 bps yesterday.
Towards the end of the week, the benchmark index will try to maintain its strengthening momentum with a potential movement in the range of 6,900 – 7,000.
The lack of bids for additional Sukuk auctions (Green Shoe Option), made the government win all bids in this auction.
Technically, the benchmark index has the potential to continue rally with the projected range of movement of 6.850 – 6.950.
On the other hand, the third round of negotiations between Ukraine and Russia has not resulted in a meaningful decision to end the conflict between the two countries.
For today, the benchmark index is expected to consolidate within the range of 6,800-6,950.
From domestic economic data, the Central Statistics Agency (BPS) recorded a deflation of 0.02% throughout February 2022, so that annual inflation is in a position 2.06%.
JCI’s movement this week may potentially be influenced by various global sentiments. Other than the Ukrainian geopolitical crisis, market participants will look forward to the US inflation data release; which consensus predicts to be at 7.9% YoY.
