IHSG continued to strengthen, with stocks supported by the mining sector, infrastructure and banking. JCI is still quite strong in the position of RSI 72%, meaning that selling pressure will still exist. On the other hand, the MA20 still are above the MA50 where this will reinforce JCI level positions 5.100 as his support. Looking ahead, JCI will try to grab the 5.200 level with the target mid-term at 5.335.
Economy Update
Gold slumped more than 1% on Monday as dwindling demand for safe haven assets following the failure of an attempted coup in Turkey, thus easing the risk events in the market sentiment.
The level of confidence among u.s. home builders dropped in July from the highest level for five months, showed that activity in the construction industry is still slow,
While in Indonesia, quite positive trade balance data where on last June, Indonesia recorded an export surplus of $ 900 million, and give the injection power for rupiah.
Equity Comment
This week investors will wait for the meeting of the determination of the interest rates of Bank Indonesia (BI). Refers to annual inflation, inflation historikal Indonesia recorded never low enough compared to projection, i.e. when the 2009, 2011-2012. When the pattern of decline in interest rates looks, where from year 2008 to year 2009 BI slowly began lowering interest rates, and when the years 2011-2012 BI again lowering interest rates below the level of 6%.
With the yearly inflation target of 4.5%-2.9%, and up to the current level of inflation is still pretty well with the expectations under the Government's target of about 4%-an then back open spaces decline in interest rates with the target annual BI below 6%. We saw his stable rupiah also make Bank Indonesia confident enough to back lowers the BI rate this week.
The potential decrease in the BI rate will download drive sectors which are quite sensitive to interest rates such as Various sectors namely industry and property, effect against sectors other than it would be pretty varied as infrasktur and consumer goods, optimism in the stock market keeps popping up, after the tax amnesty, macro fundamentals improving Indonesia also increase investor confidence, if the results of the financial statements of the company in the quarter II ciamik is not impossible then JCI will make a new record in the year.
Issuers with price's performance during the last three months is better than the performance of the JCI, among them: AGRO, DOID, BNII, INDY, PSAB, PPRO, SMBR, MEDC, CTRP, ELSA, ADRO, KINO, RALS.
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