JCI continued to strengthen throughout this week, although the movement seemed to be limited. Various stimuli related to credit relaxation and dividend tax have become positive catalysts for the stock market. For today, the JCI is estimated to be at the level of 6,300 – 6,400.
The total bid entered at the auction of Additional Government Securities (Green Shoe Option) for Government Securities (SUN) was worth IDR 20.1 trillion, with a nominal value of IDR 10 trillion won.
JCI seems to have started moving away from the consolidation phase after strengthening earlier this week. However, the depreciation of Rupiah against US Dollar and slowing economic data have the potential to put pressure on the market. For today, JCI is expected to move with a tendency to weaken in the range of 6,270 – 6,388.
The results of the auction of Government Securities (SUN) yesterday were only won with a value of IDR 17 trillion, or far below the indicative target of IDR 30 trillion.
The strengthening of JCI yesterday was in line with the majority of global and regional exchanges that closed green. Although the early month’s economic data weakened slightly, sentiment from the US stimulus seemed more dominant. For today, JCI is expected to be in the range of 6,300 – 6,400.
The Central Statistics Agency (BPS) announced that Indonesia’s inflation in February 2021 will be 0.10% MoM or 1.38% YoY.
Domestic Government Bonds (SUN) yields rose within a week, indicating that market players have relatively given up these safe haven assets.
At the beginning of March 2021, JCI’s movement will be influenced by domestic economic data such as the Consumer Price Index and Manufacturing PMI. Inflation rate in February 2021 is expected to still be low after the cuts to BI-7DRRR benchmark interest rate. Based on survey of economists, monthly inflation is predicted to be at 0.09% or down 0.26% compared to January. Investors are also hoping that Manufacturing PMI will remain in the expansion area, after being recorded at 52.2 last month.
Although during the month of February, JCI was able to strengthen 6.47%, however the majority of these increases occurred only in the first week and tended to be sideways afterwards. Entering March, market players will be watching the release of routine economic data such as the Inflation rate and Manufacturing PMI. JCI movement today is expected to be in the range of 6,200 – 6,314.
