Low Sentiment, Yield Rises Early Week
Market movements in the price of Government Securities (SUN) at the beginning of the week tended to be depressed, in line with the lack of sentiment on domestic economic data.
Daily Report | 22 June 2021
Even though it declined quite deeply throughout the day, JCI managed to minimize the weakening at yesterday’s closing. The tightening of the PPKM Mikro policy seems to have been anticipated by the market and is expected to be effective in containing the surge in Covid-19 cases. For today, JCI has the potential for a limited rebound with a range of movement at 5,944 – 6,114.
Weekend Sideways Move
Market participants have predicted that the BI 7-DRRR benchmark interest rate will remain at 3.50%.
Weekly Report | 21 June 2021
This week, JCI’s movement will tend to lack domestic economic sentiment. Investors’ attention will be focused on the surge of Covid-19 cases in Indonesia that reached more than 10,000 a day. It is feared that this will force the government to impose a stricter activity limitation policy. Globally, the market is looking forward to the PMI Manufacturing data of US and some countries in Europe.
Daily Report | 21 June 2021
Over the past week, JCI declined by 1.45%; following a sharp decline on Friday (18/06). Investors are still overshadowed by the increase in Covid-19 cases; which is feared will force the government to impose stricter restrictive policies. At the beginning of this week, JCI is expected to move in the range of 5,994 – 6,114.
Government Issues SUN Benchmark IDR 4.7 Trillion
The results of the debt switch auction yesterday, the government managed to offer FR0086, FR0087, FR0088, and FR0083 worth IDR 4.7 trillion.
Daily Report | 18 June 2021
Domestically, JCI continued its sideways movement; after Bank Indonesia, as expected, continued to hold the benchmark interest rate. Investors will be watching the impact of the surge in Covid-19 cases; especially in the DKI Jakarta area. Towards the end of the week, JCI will try to break out of the consolidation range at 6,034 – 6,134.
Mixed Market, Awaiting Fed Policy Direction
The yield on benchmark 10-year Government Bonds (SUN) FR0087 rose to 6.39%. A number of market participants are anticipating the results of the Federal Open Market Committee (FOMC) meeting, as well as the Fed’s monetary policy.
Daily Report | 17 June 2021
Meanwhile, JCI still moved sideways in the midst of foreign net sell action of IDR 453 billion that occurred yesterday. Investors seem cautious in responding to the Fed meeting; and will observe the results of today’s Bank Indonesia RDG meeting. Technically, JCI movement is expected to remain limited to the range of 6,049 – 6,134.
