Market Update: Indonesian Stocks Track Global Gains

Market Update: Indonesian Stocks Track Global Gains

• Indonesia’s trade surplus widened sharply to an all-time high of $7.56 billion in April of 2022.
• Indonesian government absorbed Rp4.277 trillion in Government Sukuk today with an indicative target of Rp9 trillion. Total incoming bids were Rp17.02 trillion.
• Shanghai reported no new Covid-19 infections in the broader community for a third consecutive day, a milestone that could lead officials to start unwinding a punishing lockdown.
• The RBA minutes showed that the central bank could further increase interest rates to ensure that inflation in the country “returns to the target over time.”
• On European data front, U.K unemployment fell to its lowest since 1974 in the first quarter, official figures revealed Tuesday, but soaring inflation pushed wages downwards.

Indonesian stocks resumed trade in positive note, tracking regional gains as concerns over China’s Covid situation eased.

Jakarta composite rose 46.474 points (+0.704%) to 6,644.467 while LQ45 rose 0.82% to 1,004.12. There were 26.016 billion shares traded worth of Rp16.667 trillion, including transaction of Rp990 billion in negotiation market. 317 shares rose while 223 declined and 156 unchanged. Foreign investors purchased a net Rp77.68 billion in regular markets.

Indonesia’s trade surplus widened sharply to an all-time high of $7.56 billion in April of 2022 from $2.29 billion in the same month of the previous year and far above market consensus of $3.25 billion, amid surging commodity prices. Exports surged 47.76% over a year earlier to a new record peak of $27.32 billion, the fastest pace in five months; while imports rose at a softer 21.97% $19.76 billion, the softest growth since February 2021.

On currency, according to JISDOR Tuesday afternoon, rupiah declined 32 points (-0.22%) to 14,651. Spot rate weakened 35 points (-0.24%) at 14,645.

Indonesian government absorbed Rp4.277 trillion in Government Sukuk today with an indicative target of Rp9 trillion. Total incoming bids were Rp17.02 trillion.

Corporate news

• IATA will issue 1,141,581,211 shares through a private placement after July 2022, as soon as the regulated two years’ period between similar corporate action has passed.
• PT Oscar Mitra Sukses Sejahtera Tbk (OLIV), a household furniture retailer, made its debut today. It allocates Rp35.28 billion of its IPO proceeds to its working capital. The company issued 400 million shares aiming for Rp40 billion. The new comer gained
• ADHI conducted a public offering of Adhi Karya Phase III 2022 Shelf-Registered Bonds worth Rp 3.75 trillion. The company will use the proceeds from this bond issuance to pay off the principal of Sustainable Bonds II Adhi Karya phase I 20217 with a payment value of Rp2.812 trillion.
• Global markets
• Asian and European stocks were higher with U.S. equity futures surged as China’s Covid situation eased while concerns surrounding inflation continue to linger. Shares in Hong Kong led gains by increasing more than 3%.
• U.S. data Monday showed New York state manufacturing activity unexpectedly shrank in May for the second time in three months. That followed Chinese figures revealing a collapse in economic activity due to Covid-linked curbs.
• Meanwhile in China, Shanghai reported no new Covid-19 infections in the broader community for a third consecutive day, a milestone that could lead officials to start unwinding a punishing lockdown.
• The RBA minutes showed that the central bank could further increase interest rates to ensure that inflation in the country “returns to the target over time.”
• On European data front, U.K unemployment fell to its lowest since 1974 in the first quarter, official figures revealed Tuesday, but soaring inflation pushed wages downwards.

Commodities

• Oil resumed gains with investors continued to digest Monday’s Chinese data that showed the economy processed 11% less crude oil in April than a year earlier.
• Brent crude rose 88 cents (+0.77%) to $115.12, while U.S. West Texas Intermediate crude climbed 73 cents (+0.64%) to $114.93 per barrel.
• Gold was up on Tuesday morning in Asia, even as the dollar slowly resumed an upward trend and U.S. Treasury yields resumed their climb.

Major index this afternoon:

STOXX 50.. 3,747.96 (+1.7%)
CAC 40.. 6,437.67 (+1.42%)
DAX.. 14,182.95 (+1.57%)
FTSE.. 7,535.31 (+0.94%)

NIKKEI.. 26,659.75 (+0.42%)
HSI.. 20,602.52 (+3.27%)
SHCOMP.. 3,093.70 (+0.65%)
TAIEX.. 16,056.09 (+0.98%)
KOSPI.. 2,620.44 (+0.92%)
S&P/ASX 200.. 7,112.50 (+0.27%)
SENSEX.. 54,318.47 (+2.54%)
STI.. 3,201.89 (+0.34%)

DOW FUT.. 32,585.00 (+1.32%)
S&P FUT.. 4,077.50 (+1.82%)
NASDAQ FUT.. 12,535.75 (+2.38%)