Indonesian Stocks End Higher, Investors Will Turn Focus to Earnings

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Indonesian stocks end higher, investors will turn focus to earnings

• Indonesia Banking industry has shown a very positive performance in 2021. Net profit in BMRI and BBCA grew 66.8% and 15.8% respectively.
• U.S. Gross domestic product accelerated at a 6.9% annualized pace in the fourth quarter
• The number of American workers filing unemployment claims declined as expected this week

Jakarta composite rose 34.35 points (+0.52%) to 6,645.511. LQ45 added 0.29% to 949.771. There were 21.696 billion shares traded worth of Rp11.694 trillion, including transaction 1.387 trillion in negotiation market. 296 shares rose while 244 declined and 142 unchanged. Foreign investors bought a net Rp135.19 billion.

On earnings, BMRI managed to record a net profit of Rp28.03 trillion throughout 2021, grew 66.8% on an annual basis. This achievement brought Bank Mandiri’s consolidated assets to reach Rp1,726 trillion while loan grew 8.86% to Rp1,050.16 trillion.

Seperately, BBCA reported 15.8% growth in net profit throughout 2021. The company recorded consolidated net income of Rp31.4 trillion last year with total asset grew 14.2% to Rp1,228.3 trillion while loan grew 8.2% to Rp637 trillion, exceeding expectation for 6% growth.

Indonesia Banking industry has shown a very positive performance in terms of loan growth, especially in the 4Q21. According to Bank Indonesia, banking industry loans grew at +5.2% YoY in December from November’s +4.7% growth). This figure was fairly in-line with BI’s expectation 4-6% YoY growth in 2021.

Nut and bolt producer PT Mitra Angkasa Sejahtera Tbk (BAUT) soared to its top auto reject limit as the company officially listed its shares on the Indonesia Stock Exchange on Friday and became the 5th IPO in 2022. The company released 1,450,000,000 shares or equivalent to 30.21% an offering price of Rp100 per share so that the total proceeds were Rp145 billion.

On coronavirus front, Indonesia recorded 8,077 new Covid-19 cases on Thursday, the highest daily tally since September 3 of last year with total number of Omicron cases has increased by 222 to 1,988 in the past 24 hours. More than 126.4 million people, or 60.7% of the target population, have been fully vaccinated to date.

On currency, according to JISDOR Friday afternoon, rupiah added 4 points (+0.03%) to14,381. Spot rate stayed 14,385.

Global markets

Asian stocks recovered some of their steep losses from the previous session on hawkish Fed. Meanwhile, European equities dropped and Wall Street stock futures were mixed at the end of a wild week for global markets, as investors continue to digest Fed’s plan to raise rates in March.U.S. Gross domestic product accelerated at a 6.9% annualized pace in the fourth quarter, well ahead of the 5.5% estimate.

The number of American workers filing unemployment claims declined as expected this week. Workers filed 260,000 initial jobless claims for the week ending on Jan. 22, the Labor Department said in a release. The number of claims was down 30,000 compared to the previous week’s revised tally, when claims unexpectedly surged to 290,000.

In Europe, Economic data releases on Friday include flash German, French and Spanish fourth-quarter GDP numbers, Italian inflation prints and a euro zone business climate survey. The Taiwan market remains closed for a holiday on Thursday.

Commodity

Persistent tension between Russia and Ukraine had pushed oil prices to seven-year highs earlier in the week. Brent crude added 35 cents (+0.39%) to $89.69 while crude futures climbed 41 cents (+0.47%) to $87.02.

The market is focusing on a Feb. 2 meeting of the Organization of the OPEC+. Gold was flat on Friday and set for its sharpest weekly decline since November, as markets digested the U.S. Federal Reserve’s policy tightening policy plan that led to a surge in dollar and Treasury yields.

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Major index this afternoon:

STOXX 50.. 4,163.30 (-0.52%)
CAC 40.. 7,004.80 (-0.27%)
DAX.. 15,386.28 (-0.89%)
FTSE.. 7,527.15 (-0.36%)

NIKKEI.. 26,717.34 (+2.09%)
SHCOMP.. 3,361.44 (-0.97%)
HSI.. 25,557.23 (-1.05%)
KOSPI.. 2,663.34 (+1.87%)
S&P/ASX 200.. 6,988.14 (+2.19%)
SENSEX.. 57,659.83 (+0.67%)
STI… 3,249.86 (-0.31%)

DOW FUT.. 33,991.00 (-0.15%)
S&P FUT.. 4,316.25 (-0.03%)
NASDAQ FUT.. 14,018.50 (+0.23%)