After a long holiday, Indonesian stock market is waiting for several important data releases in early November 2020, such as the Q3/2020 GDP growth. Although it is still negative, economic growth is predicted to experience a recovery compared to last quarter.
The JCI is expected to be under pressure from various global sentiments that occurred during the long holiday. Investors will also pay attention to the release of the CPI data for October 2020, in which Indonesia is expected to experience slight inflation after 3 consecutive months of deflation.
The JCI gained sentiments from the release of financial reports of several large companies and net purchases by foreign investors. Ahead of the long holiday, JCI is expected to move within a range of support at 5,093 and resistance at 5,176.
Most of the sentiments influencing the JCI came from domestic such as BI’s decision to maintain the benchmark interest rate, trade balance surplus, and the announcement of plans to merge SOE Sharia banks. For the past week, JCI was in the green zone with smaller foreign capital outflow.
The lack of sentiment over the past week made the JCI movement relatively stagnant with a slight increase of 0.17%. With only 2 trading days this week, JCI is expected to continue to consolidate while waiting for some important sentiments in early November such as the US Election and the release of Q3 / 2020 GDP.
Domestically, investors will be watching the start of the Q3/2020 financial report season after several companies released their performance yesterday. Towards the end of the week, JCI is expected to continue the consolidation phase with limited opportunities to increase after posting high trading volumes yesterday.
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The JCI movement will still seek new directions with some market players still tending to wait and see while waiting for new sentiments. Technically, JCI is expected to move sideways within the range 5057-5132.
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