Investors will pay close attention to the increase of Bonds Yield which happens both in the US and Indonesia, and its impacts to the stock market. Investors will also wait for more companies to issue their 2020 financial reports amid the lack of new sentiments. Furthermore, the decision to extend Micro PPKM and its effectiveness in decreasing the number of new cases is still awaited.
JCI still tended to be in a normal consolidation range. With the lack of schedule for the release of domestic economic data in the remainder of February, investors will be waiting for more companies to publish their 2020 financial results. Today, JCI is projected to move in the range of 6,173-6,314.
Prices of most Government Securities (SUN) closed lower, after Bank Indonesia (BI) cut the BI 7-DRRR benchmark interest rate in February 2021. Yields for SUN FR0086 and FR0087 respectively respectively rose to the level of 5.55% and 6.54%.
The JCI continued to weaken after the announcement of the BI-7DRRR rate cut. On the other hand, Bank Indonesia also lowered its projection for economic growth in 2021 to the range of 4.3% -5.3%. Towards the end of the week, JCI is projected to move in the range of 6,150-6,250.
The results of the Bank Indonesia (BI) Board of Governors (RDG) Meeting will be announced today. Market expectations are that BI will lower the BI 7 Days Reverse Repo Rate (BI 7-DRRR) by 25 bps to 3.50%.
JCI movement was closed down ahead of the announcement of the results of the Board of Governors Meeting (RDG) of Bank Indonesia today. An interesting phenomenon occurred in small bank stocks which shot off yesterday, while BUKU IV banks fell. For today, JCI is expected to move in the range of 6,150 – 6,250.
The two series recorded the highest incoming bids, valued at IDR 15.9 trillion and IDR 15.0 trillion, respectively. The high supply on short tenors indicates the banking sector’s participation in the 5-year and 10-year benchmarks.
The upward trend for JCI in February continued. Investors have received positive developments from the appointment of the board of directors of the Indonesia Investment Authority (INA), which indicates that the investment management institution will start operating. For today, JCI is expected to move slightly in the range of 6,200-6,330.
The majority of benchmark Government Securities (SUN) recorded an increase in yield in early trading week.
