Market Update: Indonesian Extended Declines; Rupiah at 2-Year Lows

Market Update: Indonesian Extended Declines; Rupiah at 2-Year Lows

• Indonesian stocks resumed losses on Thursday amid continue selloffs in global markets amid inflationary pressure.
• Rupiah weakened to its lowest in more than 2 years.
• Shares in Asia were mostly lower while Chinese markets rose on Thursday as government data showed factory activity grew in June.
• China’s official manufacturing Purchasing Managers’ Index for June was at 50.2, slightly lower than the expected 50.5.
• Fed Chair Jerome Powell and his counterparts in Europe and the UK warned inflation is going to be longer lasting as they gathered at the European Central Bank’s annual forum.

Indonesian stocks resumed losses on Thursday amid continue selloffs in global markets amid inflationary pressure.

Jakarta composite declined 30.769 points (-0.443%) to 6,911.582 while LQ45 slipped 0.379% to 991.935. There were 20.124 billion shares traded worth of Rp13.144 trillion, including transaction of Rp1.526 trillion in negotiation market. 156 shares rose while 374 declined and 153 unchanged.

On currency, Rupiah weakened to its lowest in more than 2 years. according to JISDOR Thursday afternoon, rupiah weakened 34 points (-0.23%) to 14,882. Spot rate weakened 46 points (-0.31%) to 14,895.

On corporate news, EMTK posted a net profit of Rp4.07 trillion in the first quarter of 2022, grew 3.893% from the same period the previous year’s Rp102 billion net profit.

Global markets

• Shares in Asia were mostly lower while Chinese markets rose on Thursday as government data showed factory activity grew in June.
• China’s official manufacturing Purchasing Managers’ Index for June was at 50.2, slightly lower than the expected 50.5.
• A flash data showed industrial production in Japan declined by 7.2% month-over-month in May 2022, compared with market consensus of a 0.3% fall and after a final 1.5% drop a month earlier.
• European stock markets slumped with U.S. futures, ending a tough month on a gloomy note, weighed by concerns like aggressive monetary tightening to curb inflation will cause a severe global economic slowdown following warnings from central banks.
• Fed Chair Jerome Powell and his counterparts in Europe and the UK warned inflation is going to be longer lasting as they gathered at the European Central Bank’s annual forum.
• German retail sales increased slightly in May, rising by 0.6% compared with the previous month

Commodities

• Oil prices were mixed as concerns about global supply tightness outweighed a build in U.S. gasoline and distillate inventories.
• Crude inventories fell by 2.8 million barrels in the week to June 24, far exceeding analysts’ expectations in a Reuters poll for a 569,000 barrel drop, U.S. Energy Information Administration data showed, even as U.S. gasoline and distillate stockpiles climbed.
• Gold prices, set to drop for a third straight month, have fallen about 6.2% this quarter. A combination of rising yields and U.S. dollar have played their part of gold underperformance.

Major index and commodities this afternoon:

STOXX 50.. 3,438.79 (-2.15%)
CAC 40.. 5,899.76 (-2.18%)
DAX.. 12,712.78 (-2.23%)
FTSE.. 7,201.01 (-1.52%)

NIKKEI.. 26,393.04 (-1.54%)
HSI.. 21,859.79 (-0.62%)
SHCOMP.. 3,398.62 (+1.10%)
TAIEX.. 14,825.73 (-2.72%)
KOSPI.. 2,332.64 (-1.91%)
S&P/ASX 200.. 6,568.10 (-1.97%)
SENSEX.. 53,222.25 (+0.37%)
STI.. 3,112.69 (-0.71%)

DOW FUT.. 30,686.00 (-1.01%)
S&P FUT.. 3,775.00 (-1.21%)
NASDAQ FUT.. 11,519.00 (-1.47%)

Crude Oil WTI.. 110 (+0.2%)
Brent Oil.. 112.78 (+0.29%)
Natural Gas.. 6.5 (+0.03%)
Gold.. 1815.95 (-0.09%)
Silver.. 20.707 (-0.15%)
Copper.. 3.746 (-0.91%)