From the domestic market, the JCI started the week flat with foreign investors posting a net sell of IDR 243 billion. Market participants still tend to wait and see
amid the lack of new positive sentiment while waiting for more companies to release their performance in semester I/2021. Technically, today JCI has the opportunity to decline with a range of movement at 6,000 – 6,166.
Bank Indonesia cut its projection for Indonesia’s economic growth to only 3.5% – 4.3% this year.
JCI’s movement this week will be dominated by domestic sentiments. Investors will pay close attention to the Level 4 PPKM evaluation result as well as the Covid-19 pandemic development. The government will use the result as a basis whether to relax or prolong the policy. Meanwhile, the market will also wait for more companies to release the financial report for Q2/2021; after BBCA, UNVR, and KRAS first released theirs last week.
JCI was still able to continue strengthening with an increase of 0.48% throughout last week; supported by foreign net buys of IDR 1.1 trillion. The government decided to continue PPKM level 4 policy until August 2, 2021; although accompanied by easing in a number of small business sectors. Entering the new week, JCI has the opportunity to strengthen with a range of movement of 6,000 – 6,226.
The 10-year SUN yield FR0087 closed at 6.28%, based on data from the NHKSI Fixed Income Department. Market participants are again interested in Government Securities (SUN) amid the re-escalation of Covid-19 cases, making the domestic economy still unable to recover until 2H21.
After experiencing a long consolidation phase, the JCI managed to break through the strong resistance level at 6,130. The increase occurred in 10 of the 11 sectors supported by foreign investors’ buying actions which reached IDR 807 billion. Towards the end of the week, the benchmark index will try to maintain its range of movement higher at 6,000 – 6,226.
Yesterday, the government won a total of seven series worth IDR 34 trillion, from bids totaling IDR 95.6 trillion in the results of the auction of Government Bonds (SUN).
From the domestic market, the JCI was able to rebound after the announcement of the government’s plan to loosen the Emergency PPKM regulations. Investors will pay close attention to the results of the Bank Indonesia board of Governors’ Meeting (RDG) which will be announced today. Technically, the JCI has the potential to experience a correction in the range of 5,950 – 6,130.
Investors are looking forward to the announcement of the continuation of the Emergency Community Activity Restrictions (PPKM) policy, making the SUN market move mixed at the beginning of the week.
