Domestically, the movement of JCI today will be influenced by the reaction of market participants to the decision to extend the Emergency PPKM until July 25, 2021. The government plans to open gradual activities if the downward trend in the number of Covid-19 cases continue. Technically, JCI still has the potential to be depressed within the range of 5,950 – 6,130.
A number of market players are again interested in government bonds for a week, to hedge against potential pressures for economic recovery.
JCI’s movement this week will be mostly dominated by domestic sentiments. Investors will pay close attention to the plan on extending emergency PPKM which was supposed to end on July 20, 2021; as well as the number of Covid-19 cases that continues to break record highs. Meanwhile, Bank Indonesia is still scheduled to hold the Board of Governors Meeting (RDG); where consensus predicts the central bank to maintain BI-7DRRR at 3.5%.
Over the past week, JCI managed to gain 0.5%; supported by foreign net buys worth IDR1.8 trillion. The market will pay close attention to the plan to extend the Emergency PPKM period and evaluate the implementation of the policy. At the beginning of the week, JCI has a chance for a technical correction in the range of 5,950 – 6,130.
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Market participants responded positively to the release of trade balance data in June which remained in surplus.
From the domestic market, the increase in big cap stocks accompanied by foreign net buys managed to lift the JCI. The market received positive sentiment from the continued accommodative policy of the Fed and the June Trade Balance surplus which reached USD 1.32 billion. Towards the end of the week, JCI will tend to move in a more confined manner to the consolidation range of 5,950 – 6,130.
The 10-year UST yield fell from 1.42% to 1.40%, amid the wait for the Fed’s Jerome Powell speech on monetary policy.
Domestically, JCI declined again amid the increase in the daily number of Covid-19 cases; which is feared will cause an economic slowdown. BPS will release trade balance data for the period of June; which is estimated to still experience a surplus in line with export growth. Technically, JCI will try to rebound with a range of movement at 5,950 – 6,130.
