Market Update: Indonesian Stocks End Higher

Market Update: Indonesian Stocks End Higher. Bank Indonesia Held Rates Unchanged

• Indonesian stocks finished slightly higher on Thursday after Bank Indonesia stood pat on policy.
• Indonesia’s central bank held its benchmark interest rate at a record low again, saying inflation remains manageable.
• Asian shares were mixed while Europeans dropped as sentiment remain fragile amid worries about the risks of a global recession following aggressive rate hikes by the Federal Reserve.
• Oil prices extended losses from the previous day, as investors worried that aggressive U.S. interest rate hikes could trigger a recession and dent fuel demand.
• President Joe Biden on Wednesday called on Congress to suspend federal gasoline and diesel taxes for three months.

Indonesian stocks finished slightly higher on Thursday after Bank Indonesia stood pat on policy.

Jakarta composite added 13.956 points (+0.2%) to 6,998.267while LQ45 added 0.44% to 1,013.22. There were 24.533 billion shares traded worth of Rp15.684 trillion, including transaction of Rp3.94trillion in negotiation market. 185 shares rose while 332 declined and 166 unchanged. Foreign investors sold a net Rp311.45 billion in regular markets.

On currency, according to JISDOR Thursday afternoon, rupiah climbed 25 points (+0.17%) to 14,835. Spot rate climbed 30 points (+0.20%) to 14,835.

Indonesia’s central bank held its benchmark interest rate at a record low again, saying inflation remains manageable as it cemented its place as an outlier on monetary policy. In the meantime, BI said current account will be on a surplus in 2Q22, whilst for full year the current account deficit will be at 0.5% – 1.3% of GDP.

On corporate news, BUMI will conduct a private placement as a debt to equity swap with Innovate Capital Pte Ltd. The Corporate Secretary confirmed that the company will issue 13,206,473,996 series C shares at Rp50 each.

Foreign investors disposed as much as Rp2.76 trillion of SMMA shares through negotiation market.

Global markets

• Asian shares were mixed while Europeans dropped as sentiment remain fragile amid worries about the risks of a global recession following aggressive rate hikes by the Federal Reserve.
• Fed Chair Jerome Powell on Wednesday told Congress that the central bank is “strongly committed to bringing inflation back down.” Inflation has hit 40-year highs in the U.S.
• In economic data, Singapore announced that core inflation was at 3.6% in May compared to a year ago. That’s slightly higher than the 3.5% that analysts polled by Reuters expected and April’s print of 3.3%.

Commodities

• Oil prices extended losses from the previous day, as investors worried that aggressive U.S. interest rate hikes could trigger a recession and dent fuel demand.
• Brent crude tumbled $2.46 (-2.2%) to $109.38, while U.S. West Texas Intermediate crude declined $2.48 (-2.33%) to $103.71 per barrel.
• President Joe Biden on Wednesday called on Congress to suspend federal gasoline and diesel taxes for three months.

Major index this afternoon:

STOXX 50.. 3,434.19 (-0.88%)
CAC 40.. 5,872.05 (-0.75%)
DAX.. 13,003.19 (-1.07%)
FTSE.. 7,061.48 (-0.39%)

NIKKEI.. 26,171.25 (+0.08%)
HSI.. 21,273.87 (+1.26%)
SHCOMP.. 3,320.15 (+1.62%)
TAIEX.. 15,176.44 (-1.12%)
KOSPI.. 2,314.32 (-1.22%)
S&P/ASX 200.. 6,528.40 (+0.31%)
SENSEX.. 52,309.37 (+0.94%)
STI.. 3,098.22 (+0.16%)

DOW FUT.. 30,453.00 (-0.06%)
S&P FUT.. 3,768.75 (+0.16%)
NASDAQ FUT.. 11,630.50 (+0.56%)