Market Update: Indonesian Stocks Trade Higher Despite Market Jitters
• Indonesian stocks rose on Thursday while rupiah depreciated as market sentiments remain fragile amid inflationary pressure.
• European stocks fell while Asia Pacific stocks turned broadly lower on Thursday as markets reacted to aggressive policy tightening outlook from global central banks.
• The U.S. central bank on Wednesday approved its biggest interest rate hike in 28 years. In the meantime, a surprise rate hike from Swiss added worries to market sentiment.
Indonesian stocks rose on Thursday while rupiah depreciated as market sentiments remain fragile amid inflationary pressure.
Jakarta composite rose 43.276 points (+0.618%) to 7,050.326 while LQ45 added 43.276 % to 1,017.892. There were 28.774 billion shares traded worth of Rp17.689 trillion, including transaction of Rp1.156 trillion in negotiation market. 326 shares rose while 206 declined and 154 unchanged. Foreign investors purchased a net Rp392.14 billion in regular markets.
On currency, according to JISDOR Wednesday afternoon, rupiah climbed 5 points (-0.03%) to 14,741. Spot rate weakened 25 points (-0.17%) to 14,765.
On earnings, MEDC $90 million net profit in 1Q22, surged by more than 17-fold from $5.1 million in 1Q21, a reverse from a net loss of $9.1 million in 4Q21.
KINO will distribute a final dividend of Rp22 per shares. An interim dividend of Rp10 has been distributed in November 2021.
Global markets
- European stocks fell while Asia Pacific stocks turned broadly lower on Thursday as markets reacted to aggressive policy tightening outlook from global central banks.
- The U.S. central bank on Wednesday approved its biggest interest rate hike in 28 years, lifting the target federal funds rate by 75 basis points to a range of between 1.5% and 1.75%. Fed officials also see further steady rises this year, targeting a federal funds rate of 3.4% by year-end.
- The Fed also said it will shrink its balance sheet by $47.5 billion a month, which will start from June 1 and step up to $95 billion in September.
- In the meantime, a surprise rate hike from Swiss added worries to market sentiment. Investors are now focus on Bank of England, as the central bank holds a policy-setting meeting later Thursday.
- On the data front, Japan’s trade deficit surged to ¥2,384.7 billion in May 2022 from ¥212.9 billion in the same month a year earlier. This was the tenth straight month of trade shortfall and the largest amount since January 2014, amid a surge in imports. Inbound shipments climbed 48.9% yoy to a fresh record peak of JPY 9,636.7 billion, while outbound shipments grew by 15.8% to JPY 7,252.1 billion. Considering the first five months of the year, Japan posted a trade gap of JPY 6,498.1 billion, compared with a surplus of JPY 478.3 billion in the corresponding period of 2021
Commodities
- Oil prices recovered on Thursday from a steep drop in the previous session after EIA showed U.S. crude production, which has been largely stagnant over the last few months, edged up 100,000 barrels per day last week to 12 million bpd, its highest level since April 2020.
- Brent crude added 56 cents (+0.47%) to $119.07, while U.S. West Texas Intermediate crude rose 59 cents (+0.51%) to $115.90 per barrel.
- Gold was up on Thursday morning in Asia as investors digested the U.S. Federal Reserve’s decision Fed Raises Rates by 0.75% as Rampant Inflation Forces Biggest Hike Since 1994
Major index this afternoon:
STOXX 50.. 3,468.89 (-1.8%)
CAC 40.. 5,937.75 (-1.53%)
DAX.. 13,207.94 (-2.06%)
FTSE.. 7,142.00 (-1.81%)
NIKKEI.. 26,431.20 (+0.4%)
HSI.. 20,845.43 (-2.17%)
SHCOMP.. 3,285.39 (-0.61%)
TAIEX.. 15,838.61 (-1.00%)
KOSPI.. 2,451.41 (+0.16%)
S&P/ASX 200.. 6,591.10 (-0.15%)
SENSEX.. 51,596.80 (-1.8%)
STI.. 3,106.31 (+0.01%)
DOW FUT.. 30,221.00 (-1.40%)
S&P FUT.. 3,725.50 (-1.79%)
NASDAQ FUT.. 11,383.00 (-2.12%)
For previous market review: Market Update: Indonesian Stocks Bounce Back From Monday’s Plunge
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