The continued rebound in JCI was able to bring the benchmark index to close above 6,000. This strengthening was supported by the mining sector which rose by 2.01%, in line with improving world commodity prices. Towards the end of the week, JCI was quite vulnerable to profit taking with a projected range of movement at 5,950 – 6,030.
The wait and see attitude of market players is waiting for the Fed’s comments regarding inflation. All benchmark series Government Bonds (SUN) recorded an increase in yield of around 3 bps, with the yield of FR0087 closing at 6.48%.
JCI was successfully closed in the green zone after weakening for the previous 2 days. Investors still tend to wait and see amid the lack of new sentiment, while waiting for the release of Indonesia’s GDP in the first quarter of 2021. JCI movement today is estimated to remain flat in the range of 5,900 – 6,000.
The results of the recent bids for a number of Government Securities (SBN) indicated a recovery in domestic bond market conditions.
From the domestic market, JCI has begun to weaken amidst corrections on the majority of global stock markets. The main sentiments are external, such as the explosion of Covid-19 case in India and the US economic recovery which is expected to run swiftly. For today, JCI is expected to continue its consolidation in the range of 5,900 – 6,000.
The SUN market at the beginning of the week closed mixed again, with the 10-year benchmark SUN FR0087 recording a yield of 6.42 percent, based on data from NH Korindo Sekuritas Indonesia.
From the domestic market, profit taking brought JCI down to under 6,000, accompanied by net sell by foreign investors. Of the several companies that have released their quarterly financial reports for Q1 2021, it seems that they are still able to record solid net profit growth. Today, JCI is expected to move sideways in the range of 5,900 – 6,000.
SUN market movement for a week, amidst the policy of restricting homecoming activities. A number of market players consider this policy to erase the momentum of increasing public consumption, which accounts for 57% of the national economy.
Entering the last week of April, JCI is predicted to move sideways in line with the decline of daily transaction value. In terms of sentiment, the market’s movement will also tend to lack positive catalyst without a scheduled release of economic data. Market participants will also pay close attention to the impact of the extension of the homecoming ban for the 2021 Eid al-Fitr period, as well as the global Covid-19 cases number after the surge in India.
