Market Update Indonesian Stocks Rose on Friday

Market Update: Indonesian Stocks Rose on Friday

• JCI finished at record high again with foreigners purchased more than Rp1 trillion
• Indonesia posted its biggest inflation rate increase in nearly two years in March.
• Pertamina raised the price of Pertamax by nearly 40% to at least Rp12,500 per liter starting today.
• Asian stocks were mixed while Europeans inched higher to kick off second quarter while worries about the Russia-Ukraine war and recession risks continue to linger.
• Chinese factory activity shrank in March, with the official manufacturing PMI coming in at 49.5, below February’s reading of 50.2.

Jakarta composite rose 7.318 points (+0.103%) to 7,78.76 while LQ45 climbed 0.44% to 1,027.52. There were 20.344 billion shares traded worth of Rp14.268 trillion, including transaction of Rp2.587 trillion in negotiation market. 213 shares rose while 299 declined and 173 unchanged. Foreigners purchased a net Rp1.18 trillion in regular market only.

On currency, according to JISDOR Friday afternoon, rupiah slipped 7 points (-0.05%) to 14,364. Spot rate slipped 3 points (-0.02%) at 14,365.

Indonesia posted its biggest inflation rate increase in nearly two years in March, and is poised to see further hikes with the arrival of the Islamic fasting month of Ramadan and the government’s decision to raise the price of a premium-grade gasoline on Friday. Consumer price index rose 2.64% year on year in March, the biggest climb since April 2020. But the inflation rate is still well within Bank Indonesia’s target range of 2-4% this year.

Adding to inflation concern, Pertamina had announced that the price of its Pertamax would rise nearly 40% to at least Rp12,500 rupiah per liter starting today.

The VAT hike finally took effect today. However, a range of items including food staples and health and education services will remain exempted from the levy.

Corporate News Update

Financial performance of LPKR improved in 2021 with net loss decreased to Rp1.6 trillion from Rp8.89 trillion in previous year.
MTEL will hold Annual General Shareholders meeting on 22 April to seek approval for its dividend plan. The company plans to pay dividend by maximum 70% of 2021 net profit.
SMGR has secured approval to distribute cash dividend of Rp1.02 trillion.

Global Markets Update

Asian stocks were mixed while Europeans inched higher to kick off second quarter while worries about the Russia-Ukraine war and recession risks continue to linger.
On the data front, The Caixin/Markit manufacturing Purchasing Managers’ Index for March came in at 48.1, the lowest since Feb. 2020. Meanwhile, Chinese factory activity shrank in March, with the official manufacturing PMI coming in at 49.5, below February’s reading of 50.2.
Preliminary estimates showed annual inflation rate in the Euro Area surged to an all-time high of 7.5% in March of 2022 compared to 5.9% in February and well above market forecasts of 6.6%.
Investors now await the latest U.S jobs report, including non-farm payrolls, due later in the day. The figures could also provide a clue to the U.S. Federal Reserve’s future monetary policy.

Commodities Update

Oil prices weakened Friday, heading for the biggest weekly loss in two years after the Biden administration ordered a massive release of crude from strategic reserves to combat soaring rampant prices. The IEA member countries are set to meet on Friday to discuss a further emergency oil release that would follow their March 1 agreement to release around 60 million barrels.
Brent crude futures fell 74 cents or 0.71% to 103.97 per barrel while West Texas Intermediate crude futures, the U.S. oil benchmark, tumbled $1.15 or 1.12% to trade at $99.13 per barrel.
Gold declined after posting the biggest quarterly advance in almost two years as Russia’s war in Ukraine, concerns over inflation and the risks to global growth burnished its appeal as a haven asset.
In other precious metals, silver edged up 0.2%. Platinum inched up 0.1% and palladium rose 0.9%, but both metals are set for a fourth consecutive weekly loss.