As the implementation of the Emergency Micro PPKM will again suppress the recovery of the domestic economy. Meanwhile, one of the points of the Emergency Community Activity Restrictions (PPKM) is to close all malls temporarily.
Domestically, JCI managed to continue strengthening, led by the consumer goods and health sectors. Inflation rate and Manufacturing PMI in June were reported to have slowed compared to the previous month. Towards the end of the week, JCI will try to stay above the psychological level of 6,000; with a projected range of movement at 5,950 – 6,130.
The price of Government Bonds (SUN) closed mixed yesterday, amid a decline in UST yields, after the US Consumer Confidence Index (IKK) increased to 127.3, or the highest level since February 2020.
In the first 6 months of 2021, JCI only managed to record a slight gain of 0.11%. In addition to considering the impact of implementation of Emergency PPKM, investors will also pay attention to the release of routine economic data, such as the inflation rate and Manufacturing PMI figures. The JCI today is estimated to move in the range of 5,950 – 6,130.
Market participants are still closely watching the government’s plan, enforcing a more stringent policy for the Enforcement of Community Activity Restrictions (PPKM).
From the domestic market, the increase in the non-cyclical consumer sector index succeeded in leading the rally in JCI. The market will still be overshadowed by the government’s plan to enforce a more stringent PPKM Mikro policy. Towards the end of semester I/2021, JCI will try to continue strengthening with a projected range of movement at 5,913 – 6,130.
Market participants responded negatively to the implementation of a stricter Community Activity Restriction (PPKM), which has the opportunity to hamper economic recovery again.
Domestically, foreign investors still posted a thin net buy of IDR 65 billion amid the decline in the JCI yesterday. The market is still overshadowed by the high number of daily Covid-19 cases that have been reported at more than 20 thousand. Technically, today, JCI has the opportunity for a limited rebound within the range of 5,900 – 6,130.
Investors responded negatively to the increase in Covid-19 cases in Indonesia. This development has made investors interested in short to medium tenor Government Securities (SUN).
