The momentum for JCI to rally was seen to continue, accompanied by foreign net buying, particularly in telecommunications stocks. In the short term, as long as the JCI is able to maintain above 5,600, there will be an opportunity to go to the next target at 5,860.
The benchmark SUN price slightly strengthened, amid various responses related to the Biden transition period and the cabinet announcement.
From the domestic market, investors are seen starting to take profit taking after the relatively high JCI hike. Yesterday’s trading was marked by a record high daily transaction value of IDR18.6 trillion. For today, JCI is likely to continue declining with a range of 5,650-5,685.
The yield for a 5-year PBS017 tenor sukuk was only 6.125% or the smallest among the Sukuk auctions yesterday, between 6.50% (PBS027) to 7.75% (PBS028).
The good news from the US has energized almost all stock exchanges in the world, including the JCI, which managed to break the 5,700 level. However, the rally of the JCI yesterday was also accompanied by the formation of a gap in the 5652-5677 area. Meanwhile, foreign net buy is also seen in a downward trend compared to the beginning of November.
Earlier this week, the benchmark Government Securities (SUN) closed mixed with a 20-year yield of FR0083 below the 7% level.
The sharp increase in the JCI yesterday succeeded in bringing the benchmark index to its highest position since the market crash in March 2020. Technically, after successfully breaking a fairly strong resistance level, JCI will try to hold above 5,600 to confirm a strengthening trend.
Last Thursday, the results of the Bank Indonesia (BI) Board of Governors (RDG) Meeting for the November 2020 period decided to lower the BI 7 Day Reverse Repo Rate (BI 7-DRRR) by 25 bps to 3.75%.
JCI’s movement was influenced by domestic sentiments from the release of trade balance and balance of payment data, to BI’s decision to cut BI-7DRRR. Meanwhile, global markets were influenced by the development of covid-19 vaccine by Moderna.
