Market Update: Indonesian Stocks Edge Lower on Tuesday

Market update: Indonesian stocks edge lower on Tuesday

• Indonesia’s central bank kept its benchmark interest rate unchanged on Tuesday to support the economy and the rupiah as it lowered growth projections for 2022.
• Bank Indonesia is now expecting economic growth at between 4.5%-5.3% this year, compared with its previous expectations of a 4.7%-5.5% expansion.
• The World Bank lowered on Monday its global growth forecast for 2022 by nearly a full percentage point, to 3.2% from 4.1%, citing the impact of the war.
• Oil prices weakened Tuesday in volatile trade as traders weighed up more supply disruptions from political demonstrations with potential increase in demand as the city of Shanghai slowly prepares to restart production after a Covid outbreak.

Jakarta composite declined 76.057 points (-1.045%) to 7,199.232 while LQ45 weakened 0.37% to 1,037.14. There were 24.559 billion shares traded worth of Rp15.225 trillion, including transaction of Rp1.439 trillion in negotiation market. 179 shares rose while 359 declined and 153 unchanged. foreign investors purchased a net Rp329.5 billion in regular market only.

On currency, according to JISDOR Tuesday afternoon, rupiah climbed 9 points (+0.06%) to 14,347. Spot rate added 18 points (+0.13%) at 14,335.

Indonesia’s central bank kept its benchmark interest rate unchanged on Tuesday to support the economy and the rupiah as it lowered growth projections for 2022. Key benchmark seven-day reverse repo rate remain at 3.50% with overnight deposit and lending facility rates at 2.75% and 4.25%, respectively.

The central bank is now expecting economic growth at between 4.5%-5.3% this year, compared with its previous expectations of a 4.7%-5.5% expansion.

Finance ministry raised Rp2.01 trillion in state securities auction today. Total incoming bids were only Rp7.54 trillion.

Corporate news Update

• Indonesia Battery Corporation signed a framework agreement with PT Aneka Tambang Tbk (ANTM) and PT Ningbo Contemporary Brunp Lygend Co Ltd and LG Energy Solution for an integrated electric vehicle battery project with total investment of $15 billion.
• TOWR posted revenue of Rp8.63 trillion in 2021. This revenue rose 15.98% from Rp7.44 trillion from 2020. The company was also able to score an increase in profit attributable to owners of the parent entity of Rp3.42 trillion throughout 2021. This net profit achievement rose 20.85% from Rp2.83 trillion in 2020.

Global markets Update

• Asia-Pacific stocks were mixed in Tuesday trade, with shares in Hong Kong leading losses regionally as the Hang Seng index fell nearly 2% as investors digested China’s central bank announcement of financial support for Covid-hit sectors.
• In Europe, stocks were lower with global investors are watching Ukraine closely after the country’s military said on Monday that a long-expected offensive push into the Donbas region in eastern Ukraine has started, with intensified assaults Monday in the Slobozhansky and Donetsk operational districts in the north and east of the country.
• The World Bank lowered on Monday its global growth forecast for 2022 by nearly a full percentage point, to 3.2% from 4.1%, citing the impact of the war.

Commodities Update

• Oil prices weakened Tuesday in volatile trade as traders weighed up more supply disruptions from political demonstrations with potential increase in demand as the city of Shanghai slowly prepares to restart production after a Covid outbreak.
• Brent crude futures were down $1.54, or 1.36%, to $111.62 a barrel, and U.S. West Texas Intermediate contracts fell $1.66, or 1.53%, to $106.55 a barrel.
• Gold retreated on Tuesday after hitting the $2,000 mark during the previous session. The dollar was near a two-year high and dented the safe-haven yellow metal’s appeal.

Major index this afternoon:

STOXX 50.. 3,809.93 (-1.01%)
CAC 40.. 6,525.12 (-0.97%)
DAX.. 14,039.94 (-0.87%)
FTSE.. 7,579.71 (-0.48%)

NIKKEI.. 26,985.09 (+0.69%)
HSI.. 21,027.76 (-2.28%)
SHCOMP.. 3,194.03 (-0.05%)
TAIEX.. 16,993.40 (+0.56%)
KOSPI.. 2,718.89 (+0.95%)
S&P/ASX 200.. 7,565.20 (+0.56%)
SENSEX.. 57,196.39 (+0.05%)
STI.. 3,314.80 (+0.36%)

DOW FUT.. 34,282.00 (-0.09%)
S&P FUT.. 4,379.25 (-0.17%)
NASDAQ FUT.. 13,861.00 (-0.34%)