Opening trade after the Eid holiday period, JCI’s movement has the potential to be influenced by sentiment from regional markets, which mostly declined over the past week. Investors will be watching the release of Trade Balance data scheduled for this week. Technically, JCI has the potential to move upward in the range of 5,910 – 5,996.
Based on data from Bank Indonesia (BI), consumer optimism in the April 2021 Consumer Confidence Index (IKK) indicator is 101.5. This figure is up from the previous month which amounted to 93.4.
From the domestic stock exchange, JCI managed to strengthen, supported by a foreign net buy of IDT 283 billion. Investors responded positively to the release of the Consumer Confidence Index (IKK) data which again rose above the 100 level, indicating an optimistic level. Approaching the Idul Fitri holiday, the JCI has the opportunity to continue its rebound with a range of 5,950 – 6,030.
Indonesia’s foreign exchange reserves (cadev) for the period of April 2021 were valued at USD 138.8 billion, or an increase compared to the March 2021 period of USD 137.1 billion.
As the Eid Al-Fitr holiday approaches, JCI is expected to still move in the reasonable consolidation range, with only 2 trading days scheduled. The lack of positive sentiments tends to cause the daily transaction volume to stay low. Bank Indonesia will release the result of Consumer Confidence Index (CCI) survey for the April 2021 period, with the last figure was recorded at 93.4. As a note, Indonesia’s CCI has not been able to return to the Optimistic Zone since March 2020.
Over the past week, JCI was corrected by 1.12%; accompanied by a foreign net buy of IDR 1.03 trillion. With only 2 trading days and the lack of new positive catalysts, this week the market movement is expected to be limited with a tendency to weaken. Technically, the projection for JCI is at 5,900 – 6,000.
The release of Indonesia’s Gross Domestic Product (GDP) data was still a positive sentiment for SUN trading yesterday.
Amid the strengthening of the majority of global stock exchanges, JCI continued its sideways trend. Market participants will be watching the release of data on foreign exchange reserves for April, which is expected to rise again. Towards the end of the week, JCI has the opportunity to experience a limited technical rebound in the range of 5,950 – 6,030.
The Central Statistics Agency recorded that Indonesia’s economy in 1Q21 grew negatively by 0.96% compared to the previous quarter, or grew negatively by 0.74% on an annual basis.
