The JCI bullish trend continued with a sharp gain of 2.06%; supported by an increase in 10 out of 11 sectoral indexes. The strengthening of world commodity prices and the declining number of Covid-19 cases; become several positive factors for the Indonesian stock market. For today, JCI will try to maintain a higher movement area in the range of 6,400 – 6,500.
Of the six series offered, the government only absorbed IDR 5 trillion in the Sukuk auction in the early fourth quarter of 2021. Based on the 2021 SBN Issuance Calendar, the government is only targeting to raise IDR 80.7 trillion in 4Q21, or much lower than the 3Q21 realization of more than IDR 260 trillion. On the other hand, bids for this auction are more than IDR 46 trillion, or higher than the previous IDR 45.3 trillion.
For today, JCI has the potential to continue the decline with a projected range of movement at 6250-6350.
The Government Securities (SUN) market closed mixed at the beginning of the week, with the yield on FR0087 at 6.30%. Market participants are closely watching the speculation of an increase in the UST10Y yield, amid the development of the infrastructure stimulus package negotiations which are currently being debated in the United States (US) parliament.
JCI posted a significant gain of 1.83%; supported by large cap stocks. Investors have again accumulated in several sectors that are closely related to economic recovery, such as: Banking, Energy, Industry, and Property. For today, JCI has the opportunity to strengthen again with a range of movement at 6,300-6,400.
JCI movement this week will tend to lack domestic economic sentiment
Market participants responded positively to the performance of domestic manufacturing which expanded again in the September 2021 period.
Entering a new week, JCI will try to maintain a higher consolidation range above 6,200.
JCI ended the third quarter of 2021 with sharp gains, supported by the energy sector which rose 5.65%. Entering October, market participants will again pay close attention to the release of routine economic data, such as the inflation rate and manufacturing PMI. Technically, the JCI has the opportunity to experience a reasonable correction with a projected range of movement at 6,150 – 6,350.
