In contrast to global markets which tended to weaken, JCI was able to rebound by 0.8%. Positive sentiment came from the consumer confidence index (CCI) which rose to 104.4; thus it has been able to stay in the optimistic zone for the past 2 months. JCI movement today will try to hold on to the psychological level of 6,000 amid the potential for profit taking.
The bid for the auction of Government Securities (SUN) yesterday managed to record a value of IDR IDR 78.5 trillion.
Domestically, JCI began to be depressed by profit-taking coupled with foreign net sells. The declining position of foreign exchange reserves and the shadow of rising US inflation are still weighting sentiments in the short term. For today, JCI is expected to consolidate in the range of 5,850 – 6,075.
From the domestic market, the rally in JCI’s strengthening seems to be limited in line with the increasing potential for profit-taking. Market participants will pay close attention to the release of the May Foreign Exchange Reserves data which is expected to increase. JCI’s movement today is still likely to continue consolidation in the range of 6,000 – 6,100.
Speculations on reducing the Fed’s stimulus re-emerged, following the statement by the Philadelphia Fed President Patrick Harker.
In the midst of waiting for the release of data on foreign exchange reserves that have the potential to rise.
JCI’s movement this week may potentially be influenced by various domestic and international economic data releases. Investors will pay close attention to the May 2021 forex reserves as well as Consumer Confidence Index (CCI). The current position of Indonesia’s forex is at USD138.8 billion or equal to 10 months of import. CCI is expected to continue its recovery, after last month breaking through 100 for the first time since March 2020. Globally, market participants will wait for the release of US inflation data which influences the direction of Federal Reserve’s policy.
Throughout last week, JCI was able to rise by 3.7%; the biggest weekly gain since last February. Market participants will pay close attention to various domestic data releases this week such as: Foreign Exchange Reserves, Retail Sales, and the Consumer Confidence Index (CCI). For today, JCI movement is expected to be limited in the range of 6,000 – 6,100.
The rupiah exchange rate closed at the level of IDR 14,280/USD or slightly weakened 0.04%. This pressure was influenced by the tapering issue, the policy of reducing the value of the Fed’s quantitative easing program.
