The Fed Wants to Tapering, JCI Threatened ‘Battered’ Today

Jakarta, CNBC Indonesia – The Composite Stock Price Index (JCI) has the opportunity to continue the weakening trend in today’s trading, Wednesday (3/11/2021).

Market participants are waiting for the policy of the United States central bank, The Federal Reserve (the Fed) regarding the initial tapering which is planned to be carried out this November. Tapering is an attempt to reduce bond purchases by the US central bank.

Last Tuesday, the JCI closed down by 0.91% to a low of 6,493.27 with a lower than usual transaction value of Rp 11.33 trillion.

Foreign market participants made net sales of Rp 146.14 billion. However, since the beginning of the year, foreign market players have still accumulated net purchases of Rp 39.53 trillion.

In his research, NH Korindo Sekuritas assessed that investors still appreciate the release of the financial performance for the third quarter of 2021, the majority of which are better than estimated.

On the other hand, market focus will shift to the outcome of the meeting of the Federal Reserve which is expected to approve the start of the tapering program by reducing the purchase of debt securities by US$ 15 billion per month.

From the domestic market, the JCI correction in early November continued with a decline of 0.91%. The decline occurred in 10 of the 11 sectoral indices, with daily transaction values ​​tending to be lower than the previous month.

“For today, the movement of the benchmark index is still potentially under pressure with a projected range of movement at 6,450-6,590,” wrote NH Korindo Sekuritas, Wednesday (11/3/2021).

Meanwhile, the CEO of Indosurya Bersinar Sekuritas, William Surya Wijaya, assessed that the development of the JCI movement seems to be still within the range of reasonable consolidation.

The JCI movement pattern will still be colored by sentiment from commodity prices and there is still no significant capital inflow flowing into the capital market, considering that the end of 2021 is in sight.

Meanwhile, the support for the JCI movement came from the stable economic condition in the midst of a slowdown as seen from the published economic data, today the JCI has the potential to be depressed in the range of 6,413 – 6,592.

[Gambas:Video CNBC]

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