Market Update: Losing Streak in Indonesian Stocks continues
• Indonesian stocks tumbled with global markets amid concerns over tightening policy as U.S. inflation remains red-hot.
• Retail sales in Indonesia grew by 9.3% year-on-year in March 2022, slowing from a 12.9% rise a month earlier and pointing to the softest rise since last October.
• Stocks in Asia and Europe were down on Thursday as investors kept an eye on aggressive tightening monetary policies after data showed the consumer price index stateside in April remaining near the highest level in more than 40 years.
• U.S. consumer prices rose 8.3% for the 12 months to April. That was slower than the 8.5% pace of a month earlier and raised hopes that the pace of price rises has peaked.
Indonesian stocks tumbled with global markets amid concerns over tightening policy as U.S. inflation remains red-hot.
Jakarta composite weakened 216.363 points (-3.174%) to 6,599.84 while LQ45 tumbled 3.13% to 993.346. There were 23.951 billion shares traded worth of Rp18.111 trillion, including transaction of Rp1.63 trillion in negotiation market. 97 shares rose while 480 declined and 112 unchanged. Foreign investors sold a net Rp705.37 billion in regular market.
Retail sales in Indonesia grew by 9.3% year-on-year in March 2022, slowing from a 12.9% rise a month earlier and pointing to the softest rise since last October.
On currency, according to JISDOR Thursday afternoon, rupiah declined 39 points (-0.27%) to 14,585. Spot rate weakened 40 points (-0.27%) at 14,595.
Corporate News Update
- HRUM will split the nominal value of the company’s shares with a ratio of 1:5, so that the original nominal value of Rp100 per share became Rp20 per share.
- TBIG will conduct a tender offer of 2.48 billion shares at a price of Rp3,200 per share on June 22 until July 22. The shares offered by Bersama Digital Infrastructure Asia are equivalent to 10.97% of all shares in TBIG.
- UNVR posted a 5.8% increase in sales year on year to Rp 10.8 trillion in the January – March 2022 period. Thus, net profit grew 19% yoy to Rp 2 trillion.
Global Markets Update
- Stocks in Asia and Europe were down on Thursday as investors kept an eye on aggressive tightening monetary policies after data showed the consumer price index stateside in April remaining near the highest level in more than 40 years.
- U.S. consumer prices rose 8.3% for the 12 months to April. That was slower than the 8.5% pace of a month earlier and raised hopes that the pace of price rises has peaked. However, it was also higher than market forecasts for 8.1%, and reaffirmed concerns that rates will need to rise quickly to tame it.
- Investors are concerned that the U.S. Federal Reserve monetary tightening will impact economic growth. The 10-year US yield extended a decline to 2.90%. The U.S. will release Producer Price Index and initial jobless claims later today.
Commodities Update
- Oil dropped on Thursday as recession concerns outweighed supply concerns and geopolitical tensions in Europe. Previously, oil prices jumped 5% after Russia sanctioned 31 companies based in countries that imposed sanctions on Moscow after the Ukraine invasion.
- Brent crude futures fell $1.28 or 1.19%, to $106.23 a barrel, and U.S. West Texas Intermediate contracts declined $1.36, or 1.29%, to $104.35 a barrel.
- U.S. distillate inventories fell by 913,000 barrels last week to 104 million barrels, according to EIA data released on Wednesday. Crude stockpiles rose by 8.5 million barrels.
- Gold saw choppy price action on Thursday, as the dollar hit a 20-year high, balancing support from a slide in Treasury yields, after the U.S. inflation data signalled the Federal Reserve would likely stick to its current, aggressive rate-hike roadmap.
Major index this afternoon:
STOXX 50.. 3,575.63 (-1.98%)
CAC 40.. 6,156.39 (-1.81%)
DAX.. 13,588.01 (-1.74%)
FTSE.. 7,198.59 (-2.03%)
NIKKEI.. 25,748.72 (-1.77%)
HSI.. 19,380.34 (-2.24%)
SHCOMP.. 3,054.99 (-0.12%)
TAIEX.. 15,616.68 (-2.43%)
KOSPI.. 2,550.08 (-1.63%)
S&P/ASX 200.. 6,941.00 (-1.75%)
SENSEX.. 53,039.48 (-1.94%)
STI.. 3,178.80 (-1.47%)
DOW FUT.. 31,640.00 (-0.32%)
S&P FUT.. 3,912.50 (-0.45%)
NASDAQ FUT.. 11,886.50 (-0.70%)
For previous market review: Market Update:Jakarta Composite Dive Deeper Amid Jumbo Outlows
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