JCI movement today is predicted to move sideways amid minimum sentiment and release of the foreign exchange reserves value that showed a slight increase. At the end of June 2020, Indonesian foreign exchange reserves is at USD131.7 billion or higher than the previous month’s USD130.5 billion.
The global exchange sentiment will be the main driver of the JCI today. In addition, the increase of Consumer Confidence Index (IKK) in June and the release of foreign exchange reserves data will be a driving factor from within the country.
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The movement of the JCI at the beginning of this week will be driven more by external sentiment. The movement of world commodity prices and the development of Corona vaccines are some of the issues that can be a market driver.
The strengthening global economic data will bring positive sentiment to the JCI movement today, and continuing the hike from yesterday. However, investors must pay close attention to the high number of new cases of Covid-19, which has just been received as many as 1,624 cases daily.
As for today’s JCI movement, investors will continue to digest the announcement of the June inflation rate which is still quite low (0.18%) MoM but still shows an increase compared to the previous month. This indicates a change in inflation trends that historically have always peaked in the Ramadhan-Eid period.
The IDX plans to launch 2 new benchmark indices in August 2020.
Domestically the JCI movement will be largely influenced by the release of June inflation data. Meanwhile, yesterday’s SUN bond auction results which are still in line with the government targets can also give positive impact to the exchange.
The Dow Jones managed to rebound on Monday’s market (29/06/2020) led by significant rise in the Boeing stocks. Investors turns their attention from the still rising Covid-19 positive cases and hope the US government will provide additional stimulus.
