Market Update: Indonesian Stocks Climb Despite Red-Hot U.S. Inflation Report

Market Update: Indonesian Stocks Climb Despite Red-Hot U.S. Inflation Report

• Indonesian stocks climbed with its regional peers despite rate-hike fears following U.S. inflation report.
• Shares in Asia-Pacific were mixed while Europeans were lower on Thursday amid hotter-than-expected inflation report in the U.S.
• U.S. Consumer Price Index rose to 9.1% in June year-on-year, a four-decade high from 8.6% in May. Analysts expected a 8.8% rise.
• The European Commission hike inflation forecast to 7.6% in the euro zone and 8.3% in Europe this year as Russia’s invasion of Ukraine puts a dampener on the region’s economies.

Indonesian stocks climbed despite rate-hike fears following U.S. inflation report.

Jakarta composite climbed 49.097 points (+0.739%) to 6,690.087 while LQ45 rose 1.296% to 948.574. There were 14.658 billion shares traded worth of Rp10.659 trillion, including transaction of Rp1.01 trillion in negotiation market. 209 shares rose while 295 declined and 177 unchanged.

According to JISDOR Thursday afternoon, rupiah weakened 14 points (+0.09%) to 14,999. Spot rate slipped 5 points (-0.03%) to 14,990

Bank Indonesia Deputy Governor Juda Agung has affirmed that the central bank is ready to adjust the benchmark interest rate if there are signs of an increase in core inflation.

UNTR allocates Rp5 trillion to repurchase its shares starting yesterday until October 12, 2022. The repurchased shares will be limited to 20% of the entire paid-up capital. After this buyback, the outstanding shares should be at least 7.5% of the company’s paid-up capital.

Global markets

• • Shares in Asia-Pacific were mixed while Europeans were lower on Thursday amid hotter-than-expected inflation report in the U.S.
  • U.S. Consumer Price Index rose to 9.1% in June year-on-year, a four-decade high from 8.6% in May. Analysts expected a 8.8% rise. Investors speculated whether the 9.1% reading marks the peak.
  • The red-hot inflation increases the risk that the FOMC will hike a historic one percentage point interest rates and triggers a recession.
  • In other economic data, Singapore’s Ministry of Trade and Industry said advance estimates show the country’s gross domestic product grew 4.8% in the second quarter of 2022 compared to the same period a year ago. That’s up from 4% in the first quarter of the year, but lower than the 5.2% growth expected.
  • Australia’s seasonally adjusted unemployment fell to a fresh record low of 3.5% in June 2022 from 3.9% in the prior three months and well below market forecasts of 3.8%, amid a further recovery in the economy from the pandemic.
  • Italian stocks tumbled while yields rose sharply ahead of a parliamentary confidence vote which risks bringing the country’s government down.
  • The European Commission hike inflation forecast to 7.6% in the euro zone and 8.3% in Europe this year as Russia’s invasion of Ukraine puts a dampener on the region’s economies.

Commodities

• • Oil prices slumped on Thursday as investors weighed tight supplies against the prospect of a large U.S. rate hike that could stem inflation and curb crude demand.
  • China’s daily crude oil imports in June sank to their lowest since July 2018, as refiners anticipated Covid-19 lockdown measures to curb demand, data showed on Wednesday. Meanwhile, data from the U.S. Energy Information Administration also point to slackening demand with product supplied slumping to 18.7 million bpd, its lowest since June 2021.
  • Gold prices slipped on Thursday, as Treasury yields and the dollar rose, with bullion’s outlook hurt by fears the Federal Reserve could go for a more aggressive interest rate hike this month, after data showed U.S. inflation sky-rocketed in June.

Major index and commodities this afternoon:
STOXX 50.. 3,424.05 (-0.87%)
CAC 40.. 5,944.06 (-0.94%)
DAX.. 12,675.99 (-0.63%)
FTSE.. 7,088.10 (-0.95%)
NIKKEI.. 26,643.39 (+0.62%)
HSI.. 20,751.21 (-0.22%)
SHCOMP.. 3,281.74 (-0.08%)
TAIEX.. 14,438.52 (+0.79%)
KOSPI.. 2,322.32 (-0.27%)
S&P/ASX 200.. 6,650.60 (+0.44%)
SENSEX.. 53,231.04 (-0.53%)
STI.. 3,093.47 (-1.13%)

DOW FUT.. 30,439.00 (-1.04%)
S&P FUT.. 3,759.50 (-1.18%)
NASDAQ FUT.. 11,613.75 (-1.26%)

Crude Oil WTI.. 94.28 (-2.10%)
Brent Oil.. 97.83 (-1.75%)
Natural Gas.. 6.647 (-0.63%)
Gold.. 1715.05 (-1.18%)
Silver.. 18.843 (-1.83%)
Copper.. 3.2485 (-2.23%)