Domestically, JCI was corrected with a weakening led by the Technology and Industry Sectors. Market participants were seen starting to take profit after the strengthening that occurred last week. For today, JCI still has the potential to continue its decline with the range of movement at 6,050 – 6,169.
In trading at the beginning of the week, the Government Securities (SUN) market was mixed. Market participants will respond to data on non-farm payrolls in the United States (US) in August, which only increased by 235 thousand. This figure is far below market expectations of 733 thousand.
The JCI started the week sideways ahead of PPKM extension until September 13, 2021. Bank Indonesia will release the position of Foreign Exchange Reserves for the August period which has the opportunity to increase to USD 139 billion. The JCI’s movement today may potentially strengthen with a projected range of 6,100 – 6,169.
The movement of Government Bond (SUN) yield at the end of the week, relatively followed the UST yield which rose to the level of 1.29%.
Approaching the second week of September, there are several economic data releases that may influence the movement of the stock market.
Over the past week, the JCI managed to strengthen by 1.42% with foreign net buys of up to IDR 1.27 trillion. Investors will pay close attention to the government’s decision on the continuation of the PPKM policy and the development of new variants of Covid-19. Technically, the JCI is expected to move in the 6.080-6.169 range.
This 20-year benchmark Government Securities (SUN) recorded a yield increase of 3 bps to a level of 6.83% based on Bloomberg data.
From the domestic market, JCI continued its decline for the second day; with foreign investors posting a net sell of IDR 91 billion. Investors still tend to wait and see amid the lack of positive catalysts in early September. Towards the end of the week, the JCI’s movement has a chance for a technical rebound with a projected movement at 6,000 – 6,169.
This 20-year benchmark series of Government Bonds (SUN) recorded a yield reduction of 6.4 bps, compared to other benchmark series which recorded yield increases of between 0.5 bps to 2.1 bps. Investors are interested in FR0083 because it offers a coupon rate of up to 7.50%, or the highest of other benchmark series between 5.50% to 6.50%.
