From the domestic market, the JCI started the month of September with a correction of 0.97%; pressured by declines in 8 sectoral indices. The inflation rate and the Indonesian Manufacturing PMI level were reported to have slightly increased in the August 2021 period. Technically, the JCI has the potential to be under pressure again and test the psychological support level at 6,000.
The signing of the Joint Decree (SKB) III between the Ministry of Finance and Bank Indonesia, which had an effect on reducing the target for the auction of Government Securities (SBN), led to high bids for the SUN auction yesterday.
Despite being under pressure throughout the day, JCI was able to close with a slight gain of 0.09% yesterday. Entering September, investors will again be paying attention to the release of routine economic data such as the inflation rate and the Manufacturing PMI. The JCI movement for today is estimated to be in the range of 6,100 – 6,200.
Investors have been anticipating the Government’s decision to extend the period of the Community Activity Restrictions (PPKM) again, although it will be accompanied by easing in areas with levels 2 and 3.
In line with the majority of global exchanges, JCI also experienced a significant rebound at the beginning of the week; with increases in all sectors. The government decided to extend the PPKM period again, although it was accompanied by easing in areas at levels 2 and 3. Technically, the JCI has the opportunity to continue strengthening with a projected range of movement at 6,100 – 6,200.
JCI’s movement this week may potentially be influenced by the release of some domestic economic data and global sentiments. Statistics Indonesia (BPS) will announce the August 2021 inflation rate, which economists have predicted to be at 0.05% mom and 1.6% yoy.
Throughout last week, JCI managed to slightly strengthen by 0.18%; supported by increases in the Technology, Health, and Transportation sectors. Investors will respond to the results of the Jackson Hole symposium meeting and pay close attention to some domestic economic data to be released at the beginning of the month. Technically, JCI has the opportunity to rebound at the beginning of the week with a range of movement at 6,021 – 6,131.
Market participants are again interested in FR0087, and potential benchmarks FR0091, and FR0092. Meanwhile, the price of FR0083 was slightly depressed, after yesterday’s significant gain.
In line with the global markets, JCI declined with a foreign net sell of IDR 274 billion. Investors tend to wait and see in anticipation of monetary policy signals from The Federal Reserve’s annual meeting. JCI movement towards the end of the week is projected to be in the range of 6,030 – 6,140.
