In addition to keeping an eye on global commodity prices, market participants are waiting for the release of the United States (US) Gross Domestic Product (GDP) for the 3Q21 period, which consensus is projected to grow 3% QoQ. The movement of the Government Bond (SUN) market earlier this week also responded to comments from the Fed Chair last Friday, which stated that it was not yet time to raise interest rates.
For today, JCI has the potential to experience a technical rebound with a projected range of movement at 6,600-6,750.
A number of market players took selective buying, amid the increase in the yield of UST10Y which had touched the level of 1.7%.
Market participants will observe the development with global commodity prices, as a decline may potentially burden the energy and mining stocks.
Despite going up 0.16% throughout last week; the upward trend in the JCI seems to be starting to hold up at the all-time high level.
JCI experienced a 0.35% correction in the midst of foreign net buy transactions which were still recorded at IDR 531 billion. The energy sector led the decline by 3.26%; as global commodity prices began to stabilize. Towards the end of the week, JCI is expected to continue to consolidate in the range of 6,600-6,750.
Market participants were interested in the PBS031 and PBS029 series in the Sukuk auction last Tuesday. Short tenors and high returns have made both series record entry offers of up to IDR 10.5 trillion and IDR 14.4 trillion.
Although slightly weaker in trading (19/10); the positive momentum of the JCI was still maintained with the accumulation of foreign net buys reaching IDR 513 billion. The outward rotation of new economic stocks seems to be continuing, marked by the decline in the technology sector index by 1.57%. Technically, the JCI has the potential to re-test the all-time high level with a range of movement at 6,600-6,750.
The FR0087 series is moving flat with a yield of 6.20%. Market participants are waiting for the release of the BI 7-DRRR benchmark interest rate data for the October period, which is projected to remain at the level of 3.50%.
