Rally in Indonesian Stocks Ease After Hitting Another Record High. Foreign Inflows Reach More Than Rp1 trillion

Indonesia Stock Market Overview Today

• Jakarta composite slipped 15.415 points after hitting another record high of 6,860.75
• Indonesia’s foreign exchange reserves fell by $3.6 billion in January to $141.3 billion, a level equivalent to 7.6 months of imports
• Foreign investors purchased a net Rp1.29 trillion in regular market
• Japan posted a current account deficit of 370.8 billion yen in December. Exports were up 18.7% on year at 7.797 trillion yen, while imports surged an annual 44.8% to 8.115 trillion yen for a trade deficit of 318.7 billion yen.
• Stocks were higher in Europe amid earnings reports while investors also continue to focus on inflation data

Jakarta composite slipped 15.415 points (-0.227%) to 6,789.522. LQ45 slid 0.26% to 962.006. There were 29.961 billion shares traded worth of Rp14.785 trillion, including transaction of Rp1.772 trillion in negotiation market. 261 shares rose while 268 declined and 152 unchanged.

Foreign investors purchased a net Rp1.29 trillion in regular market mostly on BBRI, BMRI, BBNI, and BBCA while ASII and the new comer, ENAK, became the most disposed by foreigners.

Indonesia’s foreign exchange reserves fell by $3.6 billion in January to $141.3 billion, a level equivalent to 7.6 months of imports, the central bank said on Tuesday. However, the end-January level of reserves remained adequate to support macroeconomic and financial system stability.

On currency, according to JISDOR Tuesday afternoon, rupiah climbed 19 points (-0.13%) to 14,385. Spot rate climbed 5 points (+0.03%) at 14,390.

Corporate news

BBTN posted a net profit of Rp2.37 trillion in 2021, increased 48.3% from Rp1.6 trillion reached at the end of 2020. This profit growth was in line with 44.7% net interest income growth at the end of 2021 of Rp13.2 trillion.

Bobby Gafur Umar is conducting a mandatory tender offer of 86.95 million shares or 25% of shares of OASA in order to takeover controlling stake of 166.18 million shares from PT Indovest Central and another 13.12 million from Anton Santoso. The MTO is scheduled for February 8-9 and will be concluded on March 18, 2022.

ENAK declined 2.94% on its debut. The company 433,333,400 shares or equivalent to 20.00% of the total paid up capital, consist of 166,666,800 new shares and 266,666,600 divested shares owned by Barokah Melayu Foods Pte. Ltd. IPO price was Rp850.

Global markets

Asian stocks were mixed on Monday on Tuesday with Chinese markets fell more than 1% as investors watched for prospects of further monetary policy tightening by global central banks amid inflationary pressure.

On the data front, Japan posted a current account deficit of 370.8 billion yen in December, the Ministry of Finance said on Tuesday – missing expectations for a surplus of 73.5 billion yen following the 897.3 billion yen surplus in November. Exports were up 18.7% on year at 7.797 trillion yen, while imports surged an annual 44.8% to 8.115 trillion yen for a trade deficit of 318.7 billion yen.

Many Asian nations have reported a rise in COVID-19 infections following the Lunar New Year holiday.

Meanwhile in Europe, stocks were higher amid earnings reports while investors also continue to focus on inflation data.

The dollar was unchanged, while benchmark 10-year U.S. Treasuries were steady near their highest levels since December 2019.

Commodity

U.S. oil prices slipped highs ahead of more U.S.-Iran talks. U.S. West Texas Intermediate crude slipped 69 cents, or 0.76%, to $90.66 a barrel, while Brent crude declined 79 cents, or 0.84%, to $91.85 a barrel. Investors will look for U.S. crude oil supply data from the American Petroleum Institute due later in the day.

Gold hovered around one-week high ahead of U.S. inflation data for more clues about tapering timeline

Economic events to watch this week:

• Bank Indonesia rate decision Thursday
• U.S. CPI, initial jobless claims Thursday

Indonesia Stock Market Overview Today

Major index this afternoon:

STOXX 50.. 4,141.62 (+0.51%)
CAC 40.. 7,052.50 (+0.62%)
DAX.. 15,282.07 (+0.50%)
FTSE.. 7,621.59 (+0.64%)

NIKKEI.. 27,284.52 (+0.13%)
HSI.. 24,329.49 (-1.02%)
SHCOMP.. 3,452.63 (+0.67%)
TAIEX.. 17,966.56 (+0.37%)
KOSPI.. 2,746.47 (+0.05%)
S&P/ASX 200.. 7,186.69 (+1.07%)
SENSEX.. 57,526.50 (-0.16%)
STI.. 3,408.30 (+1.24%)

DOW FUT.. 35,063.00 (+0.27%)
S&P FUT.. 4,487.25 (+0.26%)
NASDAQ FUT.. 14,591.75 (+0.22%)