From the domestic market, foreign buying of big cap stocks was able to encourage JCI to continue its strengthening rally. Optimism for economic recovery coupled with the dividend distribution season are still the main strengthening sentiments. For today, JCI will try to test the nearest resistance level with a projected range of movement at 6,060 – 6,226.
The government set the PBS030 (7.1-year) (New Issue) fee of 5.875%. This figure is far below NHKSI Research’s projection of 6.35%, or equivalent to the yield of similar tenor Sukuk, namely PBS018 (6.9-years).
Domestically, JCI has continued its upward trend for the last 5 days, which was marked by rally in 10 of the 11 sectors. Indications of economic recovery are increasingly visible in the Manufacturing and Inflation PMI data, which shows a rise. JCI will try to maintain positive momentum with a projected range of movement at 6,000 – 6,110.
Projected May 2021 inflation at 0.28% MoM (0.86% YtD; 1.64% YoY), contributed by intercity transport fares.
From the domestic market, although it weakened 0.8% throughout May; JCI was able to reverse rally in the last week. Entering June, investors will again be paying attention to the release of economic data such as the inflation rate and the Manufacturing PMI. Today’s JCI movement has the opportunity to continue rally in the range of 5,900 – 5,975.
Market participants responded positively to the United States (US) unemployment claims data, which only amounted to 406 thousand claims per last week.
JCI’s movement this week may be influenced by the release of economic data at the beginning of the month. BI projects the inflation rate in May 2021 to reach 0.33% MoM; so yearly inflation is estimated to be 1.69%. Investors will also expect the positive trend from Manufacturing PMI to continue next month after recording a new high at 54.6. Globally, market participants will inspect the release of US jobless claims rate which is predicted to fall to 5.9% from 6.1%.
Throughout last week, JCI was able to strengthen by 1.31% with foreign net buys almost reaching IDR2 trillion. Investors will be paying close attention to the release of economic data at the beginning of the month, such as the May inflation rate and the Manufacturing PMI index. JCI will try to continue strengthening in the range of 5,800 – 5,900.
US Treasury (UST) yields rose in trading Thursday, ahead of the release of jobless claims data. The 10-year UST yield rose to 1.59%, with the 30-year UST rising to 2.27%.
