Market Update: Indonesian Stocks Retreat on Profit Taking

Market Update: Indonesian stocks retreat on profit taking

• Growth in Indonesia’s external debt remained under control in February, contracting 1.5% yoy, following a contraction in the previous month of 1.6% yoy.
• The People’s Bank of China is expected to cut the one-year policy loans interest rate on Friday.
• The Bank of Korea unexpectedly announced Thursday a 25 basis points hike in its base rate to 1.5%. Elsewhere, Singapore’s central bank also tightened its monetary policy.
• The ECB will announce its latest monetary policy decision at 12:45 p.m. London time.

Jakarta composite declined 27.245 points (-0.375%) to 7,235.532 while LQ45 weakened 0.87% to 1,035.67. There were 26.002 billion shares traded worth of Rp16.116 trillion, including transaction of Rp1.808 trillion in negotiation market. 240 shares rose while 285 declined and 160 unchanged. foreign investors purchased a net Rp489.47 billion in regular market only.

• IDX will be closed tomorrow for Easter holiday.
• On currency, according to JISDOR Thursday afternoon, rupiah climbed 10 points (+0.07%) to 14,349. Spot rate added 12 points (+0.08%) at 14,350.
• Growth in Indonesia’s external debt remained under control in February, contracting 1.5% yoy, following a contraction in the previous month of 1.6% yoy.
• President Joko Widodo said that Indonesia’s sovereign wealth fund on Thursday signed two agreements to invest in toll roads on the islands of Sumatra and Java worth more than 39 trillion rupiah.

Corporate News Update

ASSA, a rental and logistic services company, secured a net profit of Rp14.26 billion at the end of December 2021, 64% higher than profit in the same period in 2020 of Rp87.1 billion. This year, the company sets the target of revenue growth to 30%-40%, backed up by several business innovations, including used car auctions and sales.

BRMS today reported its improved full year 2021 financial results. BRMS booked consistent growth in its Revenue on annual and quarterly basis. The Company’s Revenue went up from $8.3 million in 2020 to $ 10.5 million in 2021. Its gold production volume also increased from 73 kg in 2020 to 139 kg in 2021. Bottom line
went up from $4 million in 2020 to $69 million in 2021.

Global Markets Update

• Asia Pacific stocks were mostly up on Thursday, as China hinted that it would loosen monetary policy as it has in recent weeks been battling its most severe Covid outbreak on the mainland since the initial phase of the pandemic in early 2020.
• In Europe, markets were cautious ahead of the European Central Bank’s latest policy decision while investors continue to track developments in Ukraine after President Joe Biden announced another $800 million in weaponry for Ukraine.
• The People’s Bank of China is expected to cut the one-year policy loans interest rate on Friday, the second time it would be doing so in 2022 to date. The central bank could also lower the reserve requirement ratio soon, as the lockdowns to curb the country’s latest COVID-19 outbreak impact the economy.
• The Bank of Korea unexpectedly announced Thursday a 25 basis points hike in its base rate to 1.5%. Elsewhere, Singapore’s central bank also tightened its monetary policy.
• The ECB will announce its latest monetary policy decision at 12:45 p.m. London time.

Commodities Update

• Oil prices fell on Thursday, after rising sharply in the first half of the week, as traders weighed a larger-than-expected build in U.S. oil stocks against tightening global supply.
• Brent crude futures were down 83 cents, or 0.76%, to $107.95 a barrel, and U.S. West Texas Intermediate contracts fell 82 cents, or 0.79%, to $103.43 a barrel.
• Oil stocks in the U.S. rose by more than 9 million barrels last week, the U.S. Energy Information Administration said on Wednesday. Meanwhile, U.S. gasoline stocks fell 3.6 million barrels last week, far above anticipated levels, and distillate inventories also declined.
• Gold was down on Thursday morning in Asia.

Major index this afternoon:

STOXX 50.. 3,835.32 (+0.19%)
CAC 40.. 6,559.90 (+0.27%)
DAX.. 14,087.00 (+0.08%)
FTSE.. 7,567.13 (-0.18%)

NIKKEI.. 27,172.00 (+1.22%)
HSI.. 21,518.08 (+0.67%)
SHCOMP.. 3,225.64 (+1.22%)
TAIEX.. 17,245.65 (-0.32%)
KOSPI.. 2,716.71 (+0.01%)
S&P/ASX 200.. 7,523.40 (+0.59%)
SENSEX.. 58,338.93 (-0.41%)
STI.. 3,339.50 (-0.08%)

DOW FUT.. 34,478.00 (-0.01%)
S&P FUT.. 4,440.75 (-0.03%)
NASDAQ FUT.. 14,239.00 (+0.12%)