Market Update: Indonesian Stocks Little Changed Following Inflation Data

Market Update: Indonesian Stocks Little Changed Following Inflation Data

• Indonesian stocks retreated with investors digested the release of inflation data.
• Indonesia’s annual inflation rate rose to 3.55% in May 2022 from 3.47% in April above market consensus of 3.6%. This was the highest print since December 2017.
• Asian stocks were broadly lower as investor worries over high inflation and the threat of recession. Meanwhile in Europe, stocks were cautiously higher, bouncing back from its two day decline.
• Oil prices slumped over a report Saudi Arabia will pump more oil if Russian output declines. The Organization of the Petroleum Exporting Countries and allies will meet later in the day.

Indonesian stocks retreated with investors digested the release of inflation data.

Jakarta composite slipped 0.247 points (-0.003%) to 7,148.723 while LQ45 fell 1.60% to 1,039.899. There were 24.988 billion shares traded worth of Rp20.552 trillion, including transaction of Rp2.272 trillion in negotiation market. 278 shares rose while 263 declined and 151 unchanged. Foreign investors purchased a net Rp661.01 billion in regular markets.

On currency, according to JISDOR Thursday afternoon, rupiah rose 66 points (+0.45%) to 14,526. Spot rate strengthened 75 points (+0.51%) at 14,505.

Indonesia’s annual inflation rate rose to 3.55% in May 2022 from 3.47% in April above market consensus of 3.6%. This was the highest print since December 2017. Annual core inflation rate was at 2.58%, compared with April’s 23-month high of 2.60% and consensus of 2.7%. On a monthly basis, consumer prices were up 0.4% in May, the least in 3 months and compared with forecasts of a 0.41% gain.

Separately, other data showed foreign tourist arrivals in Indonesia jumped 499.01% year-on-year to 111.06 thousand in April 2022, boosted by further easing of COVID-19 restrictions and an introduction of visa free visits for tourists from Southeast Asian countries as the government seeks to revive the tourism industry to further support the country’s economic recovery from the pandemic.

Corporate News

• ELSA’s revenue in Q1 2022 shifted 34% higher than the gain reported in the same period last year. Thus, gross profit grew 67% yoy to Rp200 billion and net profit clocked up to Rp75 billion.
• MTEL has prepared up to Rp1 trillion to repurchase its shares at a maximum price of Rp801 per share following the drastic drop of the stock price.
• GOTO managed to returned to its IPO price after Indonesia Stock Exchange included the company in a list of 3 indices, including the LQ45 Index, through fast entry.
• MTDL will distribute Rp128.9 billion or around 25.3% of net profit in 2021 as cash dividend.

Global Markets

• Asian stocks were broadly lower as investor worries over high inflation and the threat of recession. Meanwhile in Europe, stocks were cautiously higher, bouncing back from its two day decline.
• Australia’s trade surplus widened to A$10.495 billion in April, data from the country’s Bureau of Statistics showed Thursday. That was higher than the surplus of A$9.3 billion expected.
• Stateside, Wednesday’s data showed the number of April job openings declined sharply from the previous month. Further, the Institute for Supply Management said its manufacturing PMI came in at 56.1 for May, up from 55.4 the month before.
• Investors are also monitoring U.S. employment data due Thursday for insights into how employers and workers are managing inflation.

Commodities

• Oil prices slumped over a report Saudi Arabia will pump more oil if Russian output declines. The Organization of the Petroleum Exporting Countries and allies will meet later in the day.
• Brent crude tumbled $3 (-2.58%) to $113.29, while U.S. West Texas Intermediate crude added declined $2.96 (-2.57%) to $112.30 per barrel.

Major index this afternoon:

STOXX 50.. 3,788.45 (+0.77%)
CAC 40.. 6,483.41 (+1.01%)
DAX.. 14,456.35 (+0.81%)
FTSE.. 7,532.95 (-0.98%)

NIKKEI.. 27,413.88 (-0.16%)
HSI.. 21,082.13 (-1%)
SHCOMP.. 3,195.46 (+0.42%)
TAIEX.. 16,552.57 (-0.73%)
KOSPI.. 2,658.99 (-1%)
S&P/ASX 200.. 7,175.90 (-0.8%)
SENSEX.. 55,763.47 (+0.69%)
STI.. 3,224.40 (-0.60%)

DOW FUT.. 32,915.00 (+0.36%)
S&P FUT.. 4,119.75 (+0.51%)
NASDAQ FUT.. 12,639.00 (+0.70%)