Dow Jones closed higher at the start of the week, led by surges in the technology sector. From domestic market, the lack of new sentiments at the start of the week is predicted to cause JCI to move sideways. As the second quarter comes to an end, investors focus on companies performance which is expected to be most impacted in this quarter.
Three Indonesian capital market Self Regulatory Organization (SRO) give stimulus for stakeholders.
Jakarta government decision to reopen shopping malls on June 15th, it can boost the retail sector. NHKSI recommends MAPI as a stock pick this week with an end of year TP of IDR 820/share based on a 11.1 trailing P/E Band.
The Dow Jones closed weaker at the end of last week as investors weighed in between the threats of second wave and economic reopening.
Major US indices closed on the mix with Dow Jones fell, while both S&P 500 and Nasdaq had small gains. The weekly unemployment report and rising Covid-19 cases are still the main driving factors. For local market, the JCI movement today will try to rebound after Bank Indonesia cut its BI-7DRRR rate, while foreign net sell slowed down yesterday.
Economists predict that the central bank will cut its benchmark rate by 25 bps.
Government has announced IDR 18 Trillion in additional fund for National Economic Recovery Program.
Today’s movement will be steered by potential profit taking and economy projection for 2nd Quarter which is expected to contract.
The Central Bank of Indonesia is predicted to cut interest rate after the improvement of several economic data.
