Market Update: Indonesian Stocks Retreat on Friday But Maintain Above 7,000

Market Update Indonesia Stocks Retreat on Friday

Jakarta composite weakened 47.153 points (-0.669%) to 7,002.532
• Foreigners purchased a net Rp1.21 trillion in all markets or Rp820.6 billion in regular market only.
• Chicago Fed President Charles Evans said Thursday he’s comfortable with raising rates in quarter-point increments, while being open to a 50 basis-point move if needed.
• Stocks in Asia and Europe struggled for direction as investors assessed hawkish U.S. monetary policy, shifts in Chinese economic policy, and ongoing ructions in commodity markets due to the war in Ukraine.
• Oil prices swung after about a $1 slump on Friday as the United States and allies considered releasing more oil from storage to cool markets and as traders faced higher costs for trading benchmark Brent futures.

Jakarta composite weakened 47.153 points (-0.669%) to 7,002.532. LQ45 fell 0.83% to 1,017.67. There were 23.296 billion shares traded worth of Rp13.671 trillion, including transaction of Rp1.873 trillion in negotiation market. 168 shares rose while 330 declined and 186 unchanged. Foreigners purchased a net Rp1.21 trillion in all markets or Rp820.6 billion in regular market only.

On currency, according to JISDOR Thursday afternoon, rupiah strengthened 20 points (+0.14%) to 14,341. Spot rate added 4 points (+0.03%) to 14,340.

The death toll from the coronavirus in Indonesia rose by 122 to 154,343 on Thursday, while 18,272 more people recovered during the past 24 hours, bringing the total number of recoveries to 5,676,510.

However, International fully vaccinated air travellers arriving in Indonesia no longer have to serve quarantine, as Covid-19 cases trend downwards around the vast archipelago. The announcement came after a successful two-week trial of quarantine-free travel for visitors arriving on the main tourist islands of Bali, Batam and Bintan.

Corporate News Update

The net profit of HMSP fell 16.83% on an annual basis to Rp7.14 trillion amid higher cigarette tax. Meanwhile, tobacco producer, ITIC, recorded 200% increase in net income to Rp18.37 billion in 2021 from Rp6.12 billion in previous year.

BMHS spent Rp50 billion to take over 35% of PT Global Sekawan Kreasi shares from PT Berely Indah Lestari.

In line with the rapid growth of the Weda Bay Indonesia industrial area, PPRE stated its readiness to support the development of infrastructure projects in Central Halmahera, North Maluku.

Global markets Update

• Stocks in Asia and Europe struggled for direction as investors assessed hawkish U.S. monetary policy, shifts in Chinese economic policy, and ongoing ructions in commodity markets due to the war in Ukraine.
• Markets in China decline with Hong Kong’s Hang Seng tumbled more than 2% after JD Logistics shares tumbled by more than 12% as the firm said it will raise HKD 8.53 billion through a share sale.
• Chicago Fed President Charles Evans said Thursday he’s comfortable with raising rates in quarter-point increments, while being open to a 50 basis-point move if needed.
• The U.S. also warned that Russian President Vladimir Putin could resort to dangerous methods, such as using biological, chemical, or nuclear weapons, as his military campaign struggles and Western sanctions continue to bite.
• Investors were also watching Japan, where the central bank refrained from stepping into the market to buy Japanese government bonds on Friday morning even as its yield target came under pressure.
• The volume of goods sold in stores and online dropped 0.3%, after rising 1.9% in January, the Office for National Statistics said Friday. Economists had expected growth of 0.7%.
• German Ifo business climate index for March due later in the session.
• Meanwhile, although the U.S. 10-year yield was still near levels last seen in 2019, key parts of the U.S. Treasury yield curve continue to flatten or are inverted. The yield on the two-year Treasury note is set for its biggest quarterly advance since 1984.

Commodities Update

• Oil prices swung after about a $1 slump on Friday as the United States and allies considered releasing more oil from storage to cool markets and as traders faced higher costs for trading benchmark Brent futures.
• Brent crude futures declined 63 cents or 0.53% to 118.39 per barrel while West Texas Intermediate crude futures, the U.S. oil benchmark, slid 98 cents or 0.09% to trade at $112.36 per barrel.
• Gold prices edged lower while silver advanced in Friday’s trade. From G7 meeting, the leaders said they were restricting the Russian Central Bank’s use of gold in transactions.

Market Update Indonesia Stocks Retreat on Friday

Major index this afternoon:

STOXX 50.. 3,877.98 (+0.38%)
CAC 40.. 6,575.72 (+0.3%)
DAX.. 14,334.33 (+0.42%)
FTSE.. 7,459.71 (-0.1%)

NIKKEI.. 28,149.84 (0.14%)
HSI.. 21,404.88 (-2.47%)
SHCOMP.. 3,212.24 (-1.17%)
TAIEX.. 17,676.95 (-0.12%)
KOSPI.. 2,729.98 (0.01%)
S&P/ASX 200.. 7,406.20 (0.26%)
SENSEX.. 57,362.20 (-0.41%)
STI.. 3,413.69 (+0.41%)

DOW FUT.. 34,621.00 (+0.05%)
S&P FUT.. 4,514.00 (+0.03%)
NASDAQ FUT.. 14,760.75 (-0.02%)