The lack of domestic sentiment and concerns about the increase in the number of Covid-19 cases, mean JCI still tend to be depressed. The market will anticipate the release of the first quarter of 2021 financial statements which are expected to be able to provide an indication of the issuer’s performance recovery. For today, JCI still has the opportunity to continue the rebound with a range of movement at 5,973 – 6,115.
The rupiah exchange rate was at IDR 14,520 / USD yesterday, or a 0.07% increase from the previous day’s close, based on Bloomberg data.
From the domestic stock market, the lack of positive catalysts and the tendency for low trading are making it difficult for JCI to get out of the pressure. The extension of the homecoming ban period and rising global Covid-19 case will be some of the factors that concern the investors. Technically, the range of movement for JCI today is at 5,980 – 6,115.
The government won all incoming bids for PBS027, PBS017, and PBS028, as they offered weighted average yields of 4.81% each; 5.73%; and 7.23%.
The continuing downward trend of JCI has brought the benchmark index back below the psychological level of 6,000. Market players seem to have responded negatively to the revised economic growth from Bank Indonesia, which is now projected at 4.1% – 5.1%. Towards the end of the week, JCI is still potentially under pressure with a range of movement at 5,900 – 6,044.
This caused the government not to win PBS029 (12.9-years), and the low nominal won by PBS017 (4.5-years) and PBS004 (15.8-years).
In line with the majority of global stock markets, pressure is still visible on the domestic stock market. However, after the announcement of Bank Indonesia RDG result, JCI seemed able to reduce the decline until it finally closed with a slight decline of -0.23%. For today, there is a chance for a technical rebound in the benchmark index with a projected range of movement in 5,997 – 6,115.
A number of government securities (SUN) market players are awaiting the results of the Bank Indonesia (BI) Board of Governors (RDG) meeting regarding the policy on interest rates in the April 2021 period. 3.5% level.
JCI’s decline at the beginning of this week was marked by a slight net sell by foreign investors. Market participants will focus on the release of BI Board of Governors (RDG) meeting result with the consensus that the BI 7-DRRR benchmark interest rate will be maintained at 3.5%. Technically, JCI is expected to remain under pressure with a range of movement at 6,000 -6,115.
