Market Review: Indonesian stocks break psychological level of 7,000
• Jakarta composite finished at all time high of 7,000.822.
• Indonesia plans to reduce its 2022 bond issuance target by at least Rp100 trillion.
• BBYB will conduct a rights issue of 5 billion new shares to increase its capital.
• Powell said the Fed is prepared to hike interest rates by a half percentage point.
• Oil prices swung after soaring more than 7% in previous day.
Jakarta composite rose 45.641 points (+0.656%) to 7,000.822. LQ45 climbed 0.79% to 1,011.753. There were 22.678 billion shares traded worth of Rp13.284 trillion, including transaction of Rp1.85 trillion in negotiation market. 303 shares rose while 205 declined and 175 unchanged. Foreign purchased a net Rp808.98 billion in regular market only.
Indonesia plans to reduce its 2022 bond issuance target by at least Rp100 trillion to better manage the financing of its fiscal deficit amid rising global market uncertainty, the country’s finance minister said on Tuesday.
On currency, according to JISDOR Tuesday afternoon, rupiah climbed 18 points (+0.13%) to 14,356. Spot rate weakened 22 points (-0.15%) to 14,360.
Corporate news
- BBYB will conduct a rights issue of 5 billion new shares to increase its capital. The company will ask for shareholders’ approval in a meeting scheduled for May 28, 2022. The recording date on Indonesia Stock Exchange has been set to May 17, 2022, while the preemptive rights sales will last from May 17 to 23, 2022.
- ZINC aims for Rp1.2 trillion revenue this year amid soaring demand for commodities.
- AKRA secured a net profit of Rp1.1 trillion in 2021, increased 20.23% from previous year, supported by basic chemical and fuel distribution.
Global markets
- Stocks in Asia and Europe were mostly up while European opened mixed on Tuesday, U.S. futures fell, with investors reacted to Jerome Powell’s comment.
- A selloff in bonds deepened as U.S. Federal Reserve Chairman Jerome Powell adopted a more hawkish tone on monetary policy.
- Powell said the Fed is prepared to hike interest rates by a half percentage point at its next policy meeting if needed after the central bank hiked its interest rate to 0.5% as it handed down its latest policy decision during the previous week.
- Investors also continue to watch the situation in Ukraine as ongoing peace talks between Moscow and Kyiv fail to make progress.
- The yield on the benchmark 10-year U.S. Treasury note climbed above 2.3% for the first time since May 2019. A closely watched gap between rates for two- and 10-year Treasury notes flattened further, indicating a potential economic downturn.
Commodities
- Oil prices swung after soaring more than 7% in previous day, with Russia’s war in Ukraine nearing the one-month mark and no conclusion in sight while European Union nations considered joining the United States in a Russian oil embargo and after a weekend attack on Saudi oil facilities.
- Brent crude futures slipped 75 cents or 0.65% to 114.87 per barrel while West Texas Intermediate crude futures, the U.S. oil benchmark, declined $1.14 or 1.02% to trade at $110.98 per barrel.
- Gold climbed following Powell’s aggressive stance.
On economic calendar this week:
• European Central Bank President Christine Lagarde among central bank speakers at the BIS innovation summit, Tuesday.
• EIA crude oil inventory report, Wednesday
• Bank of England Governor Andrew Bailey, Fed Chair Powell speak at BIS panel, Wednesday
• U.K. Chancellor Rishi Sunak’s “Spring Statement” on the budget, Wednesday
• U.S. President Joe Biden attends NATO emergency summit in Brussels, Thursday
• Eurozone Markit PMIs, Thursday
• U.S. initial jobless claims, U.S. durable goods, Thursday
Market Review: Indonesian stocks break psychological level of 7,000
Major index this afternoon:
STOXX 50.. 3,908.30 (+0.68%)
CAC 40.. 6,621.73 (+0.6%)
DAX.. 14,436.01 (+0.76%)
FTSE.. 7,485.01 (+0.57%)
NIKKEI.. 27,224.11 (+1.48%)
HSI.. 21,889.28 (+3.15%)
SHCOMP.. 3,259.86 (+0.19%
KOSPI.. 2,710.00 (+0.89%)
S&P/ASX 200.. 7,341.10 (+0.86%)
SENSEX.. 57,723.57 (+0.75%)
STI.. 3,353.30 (-0.06%)
DOW FUT.. 34,560.00 (+0.36%)
S&P FUT.. 4,466.00 (+0.31%)
NASDAQ FUT.. 14,420.00 (+0.37%)
For previous market review: Indonesian Stocks Edge Lower After Bank Indonesia Maintains Benchmark Rates Unchanged
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