Negative sentiments from the global market and the lack positive news domestically caused JCI to fall under the 5,000 level. For today, JCI movement is predicted to continue the downward trend that begun in early September.
Due to lack of new positive sentiments for capital markets, the JCI movement tends to move flat this week. In the midst of Large Scale Social Limitation (PSBB), we are focusing on stocks in the telecommunication sector, which predicted to benefit from the increase in internet data traffic.
Domestically, investors are still monitoring the high number of new Covid-19 cases entering the second week of the reintroduction of the PSBB in Jakarta. After successfully strengthening last week, the JCI this week is expected to consolidate with a tendency to weaken.
The domestic stock market today still lacks positive sentiment after Bank Indonesia’s decision to maintain its benchmark interest rate. However, despite moving in a downtrend phase, JCI today has a limited chance of rebounding after yesterday’s success in closing the gap with lower foreign net sells.
In line with what happened in the US, today’s domestic market attention will also be focused on the decision of the central bank meeting. Bank Indonesia is expected to keep the BI-7DRRR at 4%. On the technical side, the JCI movement still tends to continue the decline towards the gap that occurred at the 5.016 level.
The JCI movement today is predicted to be consolidating in response to some sentiments. Internationally, the quite encouraging Chinese retail sales data is expected to be a positive sentiment. However, domestically, the high number of new positive cases of Covid-19 will still weigh on the JCI’s steps.
After moving quite volatilely in the last 3 trading days, the JCI today still has the potential to continue the rebound on a limited basis. The implementation of the Jakarta PSBB which was looser than previously thought became a sentiment for investors to buy stocks which had experienced a deep correction.
Investor’s concern regarding the re-implementation of PSBB in Jakarta caused panic selling and resulting in temporary trading halt. Positive domestic sentiment from the release of economic data was not able to push JCI back to the green zone.
JCI movement this week is expected to be consolidated after the high volatility that occurred last week. Market players will observe the implementation of the PSBB in effect in Jakarta today and weigh the impact on the economy.
