High Yield and Benchmark Candidates
The government’s decision to carry out burden sharing in the Government Securities (SBN) market provides certainty that yield volatility will return to a limited range next year.
Daily Report | 26 Aug 2021
Domestically, JCI managed to rebound, supported by foreign net buys of IDR 789 billion. This strengthening is in line with the majority of global stock exchanges which tend to be optimistic ahead of the annual meeting of The Federal Reserve which will be held today. Technically, JCI still has the potential to continue rising with a projected range at 6,080 – 6,180.
The Strongest Short Tenor
Yesterday’s movement in the Government Securities (SUN) market had anticipated the Fed’s tapering off policy. Benchmark SUN FR0086 and FR0087 recorded yield declines of 5.6 bps and 9.4 bps, or the deepest declines compared to other benchmarks.
Daily Report | 25 Aug 2021
From the domestic market, JCI was hit by profit-taking after a significant gain in the previous 2 days. The Energy and Infrastructure Sector was the main driver with a decline of 1.49% and 1.43% respectively. For today, JCI has the potential to resume correction with a projected range of movement at 5,950 – 6,138.
Anticipating the Fed’s Tapering, SUN Market Strengthens Again
Market participants had anticipated the tapering off of the Fed by making selective purchases of a number of Government Securities (SUN) series.
Daily Report | 24 Aug 2021
In line with the movement of the majority of global exchanges, the JCI was able to strengthen at the beginning of the week with increases in all sectors. The declining Covid-19 cases and the easing of PPKM levels announced by the government have the potential to remain positive catalysts. The JCI movement projection will try to rise again to test the next resistance level at 6160.
Fed’s Meeting Continuation Signal
Balance of Payments Deficit, Mixed SUN Market. Bank Indonesia (BI) recorded Indonesia’s 2Q21 Balance of Payments (BOP) at a deficit of USD 450 million.
Weekly Report | 23 Aug 2021
Entering the 4th week of August, JCI may potentially be influenced by several important decisions. Domestically, investors will await the continuation of Level 2-4 PPPKM policy in the Java-Bali region.
Daily Report | 23 Aug 2021
Over the past week, JCI again posted a sharp decline of 1.77%; although foreign investors still booked a net buy of IDR 1.9 trillion. Global market participants will be watching for further signals from the Federal Reserve at its annual meeting scheduled for this week. Technically, JCI’s movement for today is projected to be in the range of 5,950 – 6,160.
