JCI began to decline after starting February with a sharp increase. Investors are seen profit taking, marked by the drop in second layer stocks to the lower limit. In general, the market still tends to lack new sentiment. For today, JCI is expected to move in the range of 6,000-6,157.
January inflation that returned to low, boosted investor interest in bonds. This is because real returns, or the difference between the inflation rate and the bond yields, are widening.
JCI was able to sharply strengthen while erasing some of the losses experienced last week. The release of manufacturing PMI data, which is still in an uptrend, provides a positive signal for economic recovery. Technically, JCI will try to stay above the psychological level with a range of movement between 6,000 – 6,123.
Pressure on the domestic stock market, and the positive cases of the Covid-19 virus in Indonesia, which reached more than 1 million, have pushed investors to shift interest in safe haven instruments such as SUN.
Movement rate of JCI was influenced by domestic sentiment such as the government’s decision to extend PPKM, and global sentiments. The global sentiments include the Fed’s decision to maintain the benchmark interest rate, and release of the US GDP data which booked a slower growth in the fourth quarter. In the past week, JCI continued its decline and closed in the red.
The decline in JCI that occurred in the last 7 days has driven the benchmark index down by 1.95% over the past month. This week, investors are hoping for a positive catalyst from the scheduled release of economic data. Technically, JCI will try to maintain its support area with a range of movement at 5,825-6,065.
As the number of Covid-19 cases in Indonesia surpasses the 1 million mark, JCI starts to take a U-turn.
Yesterday, the majority of Government Securities (SUN) prices were relatively strong, amid pressure on the Jakarta Composite Index (IHSG).
The decline in the JCI for 6 consecutive days caused the benchmark index to close below the 6,000 level for the first time in 2021. Although there is still a lack positive catalyst, investors will start to watch for the start of the financial reporting season after PT Bank Mandiri Tbk (BMRI) released its 2020 performance. Today, JCI is expected to move in the range of 5,835 – 6,195.
