China’s Economy Grows Lower, SUN Prices Mixed
Government Bond (SUN) prices closed mixed amid the market response to China’s economic growth data, which will grow 2.3% YoY in 2020.
Daily Report | Rotations to Large Cap Stocks
The strengthening of the JCI at the beginning of this week was marked by declines in second and third tier stocks reaching the lower limit (Auto Reject). This indicates that market players are returning to large cap stocks. Today JCI is expected to move in the range of 6,316-6,472.
Trade Balance Surplus Supports SUN Weekend
The Central Statistics Agency (BPS) recorded that the trade balance for the period of December 2020 had a surplus of USD 2.1 billion.
Weekly Report | 18 January 2021
The inauguration of US President-elect Joe Biden scheduled for January 20, 2021 will be center of the world’s attention. Domestically, investors will be watching the results of the Bank Indonesia Board of Governors Meeting which is projected to keep the benchmark interest rate at 3.75 percent. Technically, the JCI is still quite vulnerable to correction after experiencing a long rally since October 2020.
Daily Report | China GDP Data Release
During the last week, JCI was still able to strengthen by 1.85%, even though it closed lower on Friday. Entering the new week, investors will observe a number of sentiments, including: the release of China’s GDP data, the inauguration of the US president and the results of the Bank Indonesia Board of Governors (RDG) Meeting. Today JCI is expected to move in the range of 6,342 – 6,472.
Still Responds Positively to Vaccination Sentiments
The Government Securities (SUN) market closed mixed, with yield inversions occurring again at the 10-year and 15-year benchmarks.
Daily Report | Balance of Trade Predicted to Surplus
JCI is still continuing its consolidation phase after gaining more than 7% since the beginning of the year. From the economic calendar, investors will look at the release of balance of trade data which is projected to still be a surplus of USD 2.3 billion. For today, JCI is expected to move in the range 6,350 – 6,560.
Sentiment on Covid-19 Vaccination
After the Food and Drug Administration (BPOM) issued a permit for the emergency use of the Covid-19 Sinovac vaccine, this became the main driving force for the bond market yesterday.
Daily Report | US Political Tension Rises
JCI movement continued its bullish trend after the Covid-19 vaccination program began yesterday. However, the increase in new cases accompanied by lockdown policies in various parts of the world may still potentially become an inhibiting factor. Today JCI is expected to move at the level of 6,350 – 6,560.
