Check Out Some Sentiments That Drive The JCI This Week

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (IHSG) is predominantly moving in the green zone but closed stagnant at 6,633.43 on Monday, June 5 trading. Indo Premier Sekuritas (IPOT) analyst Mino sees that there are a number of sentiments driving the market this week.

According to Mino, sentiment from the domestic sector includes the release of manufacturing data, inflation data, and foreign exchange reserves data. Meanwhile externally, sentiment stems from the approval of the United States (US) debt ceiling by Congress, positive non-farm payrolls (NPF) data, weekly jobless claims, and developments in commodity prices.

In May 2023, Indonesia's manufacturing index was recorded to have decreased to 50.2 from the previous 52.7. Even so, Indonesia's manufacturing sector is still in an expansive phase for the 21st time in a row.

The Central Statistics Agency (BPS) noted that Indonesia's annual inflation in May 2023 reached 4% year on year (YoY), lower than the consensus estimate of 4.22% YoY.

As a result, Indonesia's inflation has consistently decreased over the past three months, namely from 4.97 percent in March 2023 and 4.33 percent in April 2023.

From external sentiment, with the approval of the US debt ceiling by Congress on Wednesday and Thursday morning US time, the Senate also voted with a 63-36 result to approve the debt ceiling.

President Joe Biden also signed the debt ceiling into law on Saturday local time so this is a positive sentiment for the market.

Then, the US NPF data in May 2023 added by 339,000, up from the previous 294,000 and far higher than the consensus estimate of 190,000. Meanwhile, the unemployment rate rose to 3.7 percent from 3.4 percent previously.