Jakarta (Benchmark News) – Sinarmas Securities predicts the composite stock price index (IHSG) in trading Friday (9/12/2016) moves mixed strengthened continuing strengthening of trade yesterday’s session and tried to break through resistance at point level 5,300.
Sinarmas Securities research team exposed, from the global, the ECB decided to prolong the stimulus than before ending in March 2017 to December 2017. However this gives mixed signals towards the market along with the number of purchases of bonds, which was derived from the earlier 80 billion euros/month to 60 billion Euro/months for the period April to December 2017.
At a glance, it appears that the ECB lowered the purchase of bonds, but the additional purchase of the bonds exceeded the number of six-month purchase at 80 billion euros/month. This led to the rise of the U.S. dollar index and the weakening of the Euro currency. Meanwhile, U.S. exchanges experienced a strengthening over the ECB’s decision and continue to make record high.
From the domestic side, the exchange rate of the rupiah against the U.S. dollar is quite strong, in which case it gives a positive sentiment toward the JCI, accompanied by a decrease in 10-year government bond yield of 1.29% and fall of 5-year credit default swap Indonesia amounting to 0.95%.
For the trading session today can be observed in coal sector (ADRO, PTBA) that is projected to be a positive move in line with the rebound of the price of coal to Newcastle of 1.2% and amounted to 3.3%. Then, considering the sector rectified during the last two days because of the fall in the price of the underlying.
In addition to coal, world oil prices also went up by 2.3%, of which it is estimated will also give a positive impact against the sector.
“In a technical, JCI predictable moves in the range of 5273-5351 with buy on weakness of stocks TLKM, ASII, INDF, and BSDE,” the research…(Red)