From the domestic market, JCI was still able to continue its gains, led by banking and metal mining stocks. The Q1/21 GDP release that was in line with expectations did not appear to have a significant impact on the capital market. For today, JCI has the potential to be limited by profit taking on a range of 5,900 – 6,030.
The results of the Sukuk auction recorded an incoming bid of IDR 19.9 trillion. The government offers a total of six SBSN series consisting of 1 sharia state treasury note (SPN-S) and five project based sukuk (PBS).
JCI seems to still struggle within the range of its normal consolidation. Market participants will be watching the release of Indonesia’s GDP figures for the first quarter of 2021, where the consensus estimates the economy to still be in a contraction zone. Technically, JCI still has the opportunity to continue strengthening with a range of movements at 5,932 – 6,030.
Investors responded positively to the release of domestic economic data earlier in the week. April 2021 inflation was 0.13% MoM or higher than 0.08% MoM in the previous month.
Domestically, correction to the JCI continued into May. Increase in the Manufacturing PMI to 54.6 for the April 2021 period was offset by the release of below-expected inflation data. Although still under pressure, the JCI today has the opportunity for a technical rebound in the range of 5,938 – 6,030.
The US Gross Domestic Product (GDP) has recorded a recovery from the impact of Covid-19. US economy 1Q21 period at 6.4% YoY.
JCI’s movement this week will be influenced by the fairly packed scheduled release of domestic economic data. Investors will be watching the Manufacturing PMI data which was at its highest last month, as well as the inflation rate growth in Ramadhan. On Tuesday (05/04), BPS will announce the Q1/21 economic growth, which the consensus project to contract in the range of -1%. Towards the end of the week, the market will be waiting for the release of Foreign Exchange Reserves for April 2021.
Throughout April, JCI’s movement was relatively stagnant with a slight increase of 0.17%. Investors will be watching the release of economic data such as the Manufacturing PMI index, which reached its highest point last month, as well as inflation which is expected to increase in this Ramadan period. JCI twill still try to get out of the consolidation phase today in the range of 5,950 – 6,030.
The US Central Bank (the Fed) has again kept the Fed Rate low, even though the economy of the United States (US) is recovering faster than expected.
