Although it had time to re-penetrate 5,900; JCI strengthening yesterday was held back by large bank stocks which weakened towards closing. Investors will pay close attention to the various corporate action plans that are happening. Towards the end of the week, JCI will try to strengthen within a limit; the projected range of movement is 5,800 – 5,975.
The yield on the 10-year FR0087 SUN is around 6.50%, which remains attractive amidst the BI 7-DRRR which remains at 3.50% for the May 2021 period.
Domestically, the increase in transaction volume and net foreign buy is expected to continue supporting JCI. Investors welcomed Bank Indonesia’s decision to maintain interest rates and projected economic growth in 2021. Today, JCI is expected to move in a consolidated manner with a tendency to strengthen in the range of 5,750 – 5,850.
Based on the survey, the Bank Indonesia benchmark interest rate (BI 7-DRRR) for the May period remained at the level of 3.50%, or the lowest level in its history.
Contrary to the majority of global stock markets, JCI continued to decline at the beginning of the week. Market players will await the announcement of the Bank Indonesia Board of Governors (RDG) Meeting result today; as well as the central bank’s views on the Indonesian economy. For today, JCI will try to rebound with the projected movement at the levels of 5,742 – 5,853.
Bank Indonesia (BI) recorded a surplus of USD 4.1 billion in Indonesia’s balance of payments in 1Q21, or better than 4Q20, which was a deficit of USD 0.2 billion.
JCI movement this week will try to rebound out of the pressure in the past month. One of the positives comes from the value of daily transaction which has started to increase after the Eid holiday. Investors will also pay close attention to the Bank Indonesia Board of Governors which is scheduled for this week. BI’s decision to maintain BI-7DRRR on the lowest level at 3.5% seems to start to bear fruit, marked by the decline in bank lending rates.
Over the past week, JCI declined by 2.78%, although this was accompanied by an increase in daily transaction value. The focus of investors will be on the Board of Governors Meeting (RDG) of Bank Indonesia, where the Central Bank is projected to maintain its benchmark interest rate. Entering the new week, JCI will try to rebound with a range of movement at 5,737 – 5,853.
The Central Statistics Agency (BPS) reported that exports in April 2021 were valued at USD 18.4 billion or grew 51.9%.
