The JCI September 9, 2020

๐’๐ž๐ฉ๐ญ๐ž๐ฆ๐›๐ž๐ซ ๐Ÿ—, ๐Ÿ๐ŸŽ๐Ÿ๐ŸŽ

 

* ๐“๐ก๐ž ๐‰๐‚๐ˆ ๐ญ๐ซ๐š๐๐ข๐ง๐  ๐ซ๐š๐ง๐ ๐ž: ๐Ÿ“,๐Ÿ๐Ÿ“๐ŸŽ๐ฉ๐ญ – ๐Ÿ“,๐Ÿ‘๐ŸŽ๐ŸŽ๐ฉ๐ญย  (๐˜๐ž๐ฌ๐ญ๐ž๐ซ๐๐š๐ฒ ๐œ๐ฅ๐จ๐ฌ๐ž: ๐Ÿ“,๐Ÿ๐Ÿ’๐Ÿ’๐ฉ๐ญ)

* ๐ˆ๐ง๐๐ข๐œ๐ž๐ฌ ๐ข๐ง ๐–๐š๐ฅ๐ฅ ๐’๐ญ๐ซ๐ž๐ž๐ญ ๐ฉ๐ฅ๐ฎ๐ง๐ ๐ž๐ ๐จ๐ง ๐š๐ฏ๐ž๐ซ๐š๐ ๐ž ๐›๐ฒ ๐จ๐ฏ๐ž๐ซ ๐Ÿ‘%,ย  ๐ฆ๐š๐ข๐ง๐ฅ๐ฒ ๐จ๐ง ๐๐จ๐ž๐ข๐ง๐  ๐Ÿ๐จ๐ซ ๐ญ๐ก๐ž ๐ƒ๐‰๐ˆ๐€, ๐š๐ง๐ ๐จ๐ง ๐ฎ๐ง๐ฌ๐ฎ๐ฌ๐ญ๐š๐ข๐ง๐š๐›๐ฅ๐ž ๐ฏ๐š๐ฅ๐ฎ๐š๐ญ๐ข๐จ๐ง๐ฌ ๐Ÿ๐จ๐ซ ๐ญ๐ž๐œ๐ก ๐ฌ๐ก๐š๐ซ๐ž๐ฌ ๐Ÿ๐จ๐ซ ๐›๐จ๐ญ๐ก ๐ญ๐ก๐ž ๐’&๐๐Ÿ“๐ŸŽ๐ŸŽ ๐š๐ง๐ ๐ญ๐ก๐ž ๐๐š๐ฌ๐๐š๐ช

* ๐“๐ก๐ž ๐‰๐‚๐ˆ ๐ข๐ฌ ๐ž๐ฑ๐ฉ๐ž๐œ๐ญ๐ž๐ ๐ญ๐จ ๐ก๐จ๐ฅ๐ ๐ฌ๐ž๐ฅ๐ฅ๐ข๐ง๐  ๐ฉ๐ซ๐ž๐ฌ๐ฌ๐ฎ๐ซ๐ž๐ฌ, ๐š๐ฅ๐ฌ๐จ ๐จ๐ง ๐ญ๐ก๐ž ๐๐ข๐ฏ๐ž ๐จ๐Ÿ ๐–๐“๐ˆ ๐ฉ๐ซ๐ข๐œ๐ž ๐ญ๐ก๐š๐ญ ๐ฌ๐ž๐ญ๐ญ๐ฅ๐ž๐ ๐›๐ฒ ๐Ÿ–% ๐ฅ๐จ๐ฐ๐ž๐ซ ๐ข๐ง ๐ญ๐ก๐ž ๐ฅ๐š๐ฌ๐ญ ๐œ๐ฅ๐จ๐ฌ๐ž

 

Morning,

 

The Jakarta Composite Index (JCI) today (8/9) is expected to be within the range of 5,150pt โ€“ 5,300pt, to hold selling pressures but supported by bargain hunters. Meanwhile, yesterday (8/9) the DJIA ended lower by 632 points or 2.3%, while S&P500 and the Nasdaq both closed by 2.8% and 4.1%, respectively.

 

๐ˆ๐ง๐๐จ๐ง๐ž๐ฌ๐ข๐š ๐‚๐จ๐ง๐ฌ๐ฎ๐ฆ๐ž๐ซ ๐’๐ž๐œ๐ญ๐จ๐ซ

 

๐‡๐ข๐ ๐ก๐ฅ๐ข๐ ๐ก๐ญ ๐Ÿ๐ซ๐จ๐ฆ ๐ญ๐ก๐ž ๐ง๐ž๐ฐ๐ฌ

Government bonds auction which was held yesterday attracted investorsโ€™ bid in the amount of IDR52.3tr vs. IDR78.3tr in the last one, representing a decline of 33%. ย Decline in the incoming- bid was mainly associated with the plan of central bank law amendment which has the implication to reduce the bankโ€™s independence. The government approved final bid of IDR22tr , representing a bid-to-cover ratio of 2.4 times, with a weighted average yield lower as compared to that of in the secondary market on the previous day, and compared to the one in the last auction, data as quoted from the media release.

The bid-to-cover ratio and the effective weighted-average-yield of yesterdayโ€™s ย auction reflected healthy investorsโ€™ interest. This was not only due to the current relatively stable domestic ย banks system condition, but also many countries are still intensifying expansive monetary stance. In the United States, the latest policy of the central bank allows the inflation rate be higher above the target of 2% to allow lower unemployment ratesย  while keeping the reference rate unchanged. ย ย The Fedโ€™s last ย statement on monetary policy goals reflects shift of focus from “assessments of the shortfalls of employment from its maximum level” to “deviations from its maximum level.โ€ ย Intensifying expansive monetary stance in other countries allow yield differential to remain attractive at the declining trend of reference rates BI7D-RRR, in our observation.

 

At the other end, yesterday the WTI price closed lower by 7.6% at USD36.8/barrel as compared to the previous amid growing demand concerns as Covid-19 continues to spread..ย  Meanwhile the ย USDIDR ย closedย  at IDR14.798 vs. IDR14.754 the previous one.

 

We advise the following recommendations, for both trading and longer-time investment purpose. ๐€๐€๐‹๐ˆ, ๐‹๐’๐ˆ๐ (๐ฌ๐ž๐œ๐ญ๐จ๐ซ ๐จ๐Ÿ ๐˜ˆ๐˜จ๐˜ณ๐˜ช, ๐š๐ฅ๐ฅ๐จ๐œ๐š๐ญ๐ข๐จ๐ง ๐ฌ๐ฎ๐ ๐ ๐ž๐ฌ๐ญ๐ข๐จ๐ง ๐˜œ๐˜ฏ๐˜ฅ๐˜ฆ๐˜ณ๐˜ธ๐˜ฆ๐˜ช๐˜จ๐˜ฉ๐˜ต ), ๐”๐๐“๐‘, ๐ˆ๐“๐Œ๐†, ๐€๐ƒ๐‘๐Ž, ๐๐“๐๐€ (๐ฌ๐ž๐œ๐ญ๐จ๐ซ ๐จ๐Ÿ ๐˜Š๐˜ฐ๐˜ข๐˜ญ ๐˜”๐˜ช๐˜ฏ๐˜ช๐˜ฏ๐˜จ, ๐š๐ฅ๐ฅ๐จ๐œ๐š๐ญ๐ข๐จ๐ง ๐ฌ๐ฎ๐ ๐ ๐ž๐ฌ๐ญ๐ข๐จ๐ง ๐˜”๐˜ข๐˜ณ๐˜ฌ๐˜ฆ๐˜ต-๐˜ธ๐˜ฆ๐˜ช๐˜จ๐˜ฉ๐˜ต), ๐†๐†๐‘๐Œ, ๐”๐๐•๐‘, ๐ˆ๐‚๐๐ (๐ฌ๐ž๐œ๐ญ๐จ๐ซ ๐จ๐Ÿ ๐˜Š๐˜ฐ๐˜ฏ๐˜ด๐˜ถ๐˜ฎ๐˜ฆ๐˜ณ, ๐š๐ฅ๐ฅ๐จ๐œ๐š๐ญ๐ข๐จ๐ง ๐ฌ๐ฎ๐ ๐ ๐ž๐ฌ๐ญ๐ข๐จ๐ง ๐˜–๐˜ท๐˜ฆ๐˜ณ๐˜ธ๐˜ฆ๐˜ช๐˜จ๐˜ฉ๐˜ต ), ๐€๐’๐ˆ๐ˆ (๐ฌ๐ž๐œ๐ญ๐จ๐ซ ๐จ๐Ÿ ๐˜ˆ๐˜ถ๐˜ต๐˜ฐ๐˜ฎ๐˜ข๐˜ต๐˜ช๐˜ท๐˜ฆ, ๐š๐ฅ๐ฅ๐จ๐œ๐š๐ญ๐ข๐จ๐ง ๐ฌ๐ฎ๐ ๐ ๐ž๐ฌ๐ญ๐ข๐จ๐ง ๐˜”๐˜ข๐˜ณ๐˜ฌ๐˜ฆ๐˜ต-๐˜ธ๐˜ฆ๐˜ช๐˜จ๐˜ฉ๐˜ต), ๐š๐ง๐ ๐€๐‚๐„๐’, ๐’๐‚๐Œ๐€, ๐Œ๐€๐๐ˆ (๐ฌ๐ž๐œ๐ญ๐จ๐ซ ๐จ๐Ÿ ๐˜›๐˜ณ๐˜ข๐˜ฅ๐˜ฆ, ๐š๐ฅ๐ฅ๐จ๐œ๐š๐ญ๐ข๐จ๐ง ๐ฌ๐ฎ๐ ๐ ๐ž๐ฌ๐ญ๐ข๐จ๐ง ๐˜–๐˜ท๐˜ฆ๐˜ณ๐˜ธ๐˜ฆ๐˜ช๐˜จ๐˜ฉ๐˜ต),๐š๐ง๐ ๐“๐Š๐ˆ๐Œ (๐ฌ๐ž๐œ๐ญ๐จ๐ซ ๐จ๐Ÿ ๐˜‰๐˜ข๐˜ด๐˜ช๐˜ค ๐˜๐˜ฏ๐˜ฅ๐˜ถ๐˜ด๐˜ต๐˜ณ๐˜บ, ๐š๐ฅ๐ฅ๐จ๐œ๐š๐ญ๐ข๐จ๐ง ๐ฌ๐ฎ๐ ๐ ๐ž๐ฌ๐ญ๐ข๐จ๐ง ๐˜”๐˜ข๐˜ณ๐˜ฌ๐˜ฆ๐˜ต-๐˜ธ๐˜ฆ๐˜ช๐˜จ๐˜ฉ๐˜ต).

 

 

Cheers,

 

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