Market Update: Indonesian Stocks Trade Higher

Market Update: Indonesian Stocks Trade Higher

• Indonesian stocks outperformed alongside with its currency after Bank Indonesia held benchmark rates unchanged.
• Bank Indonesia maintained its key benchmark seven-day reverse repo rate at 3.50%, and its overnight deposit and lending facility rates at 2.75% and 4.25%, respectively.
• The value of loans in Indonesia increased 9.10% in April of 2022 over the same month in the previous year, the strongest growth since July 2019.
• The World Economic Forum at Davos warned that the global economic outlook has “darkened”.
• In a move to raise its economic profile and create another counterbalance to China within Asia, the United States announced on Monday the Indo-Pacific Economic Framework with Asian partners including Australia, Japan and the Republic of Korea.

Indonesian stocks outperformed alongside with its currency after Bank Indonesia held benchmark rates unchanged.

Jakarta composite rose 73.366 points (+1.072%) to 6,914.141 while LQ45 jumped 1.33% to 1,015.931. There were 22.436 billion shares traded worth of Rp16.46 trillion, including transaction of Rp1.146 trillion in negotiation market. 272 shares rose while 261 declined and 162 unchanged. Foreign investors purchased a net Rp19.58 billion in regular markets.

On currency, according to JISDOR Tuesday afternoon, rupiah climbed 12 points (+0.08%) to 14,653. Spot rate rose 15 points (+0.10%) at 14,655.

Bank Indonesia kept its benchmark interest rate unchanged on Tuesday to support economic growth amid ongoing geopolitical headwinds. The central bank maintained its key benchmark seven-day reverse repo rate at 3.50%, and its overnight deposit and lending facility rates at 2.75% and 4.25%, respectively.

The value of loans in Indonesia increased 9.10% in April of 2022 over the same month in the previous year, the strongest growth since July 2019.

Corporate News

• PWON posted a net profit of Rp370.6 billion in the first three months of 2022, an increase of 56.7% compared to the same period in 2021, which was recorded at Rp236.6 billion.
• In Annual General Shareholders’ meetings today, ANTM decided to distribute dividends of Rp930.87 billion or 50% of net profit while PTBA decided to distribute 100% of its net profit as dividend.

Global Markets

• Asian and European stocks came under pressure on Tuesday amid renewed concern over economic growth.
• The World Economic Forum at Davos warned that the global economic outlook has “darkened”.
• Markets had taken some comfort from U.S. President Joe Biden’s comment on Monday that he was considering easing tariffs on China, and from Beijing’s ongoing promises of stimulus.
• The Reserve Bank of New Zealand will hand down its policy decision on Wednesday, with the Bank of Korea following a day later. Stateside, U.S. new home sales, as well as the manufacturing and services PMIs, are due later today, with U.S. GDP, initial jobless claims are due on Thursday.
• On other news, in a move to raise its economic profile and create another counterbalance to China within Asia, the United States announced on Monday the Indo-Pacific Economic Framework with Asian partners including Australia, Japan and the Republic of Korea.

Commodities

• Oil prices eased on Tuesday as concerns over a possible recession and weaker consumption outweighed an expectation of tight global supply and a pick-up in fuel demand in China after Beijing’s promises of stimulus.
• Brent crude declined 24 cents (-0.21%) to $113.18, while U.S. West Texas Intermediate crude weakened 14 cents (-0.13%) to $110.15 per barrel.
• Gold edged up while traders await the minutes from the Fed’s last meeting, due on Wednesday.

Market Update: Indonesian Stocks Trade Higher

Major index this afternoon:

STOXX 50.. 3,661.47 (-1.27%)
CAC 40.. 6,271.67 (-1.37%)
DAX.. 14,032.95 (-1%)
FTSE.. 7,472.14 (-0.55%)

NIKKEI.. 26,748.14 (-0.94%)
HSI.. 20,112.10 (-1.75%)
SHCOMP.. 3,070.93 (-2.41%)
TAIEX.. 15,963.63 (-1.19%)
KOSPI.. 2,605.87 (-1.57%)
S&P/ASX 200.. 7,128.80 (-0.28%)
SENSEX.. 53,952.70 (-0.62%)
STI.. 3,203.14 (-0.33%)

DOW FUT.. 31,499.00 (-1.07%)
S&P FUT.. 3,911.75 (-1.51)
NASDAQ FUT.. 11,778.25 (-2.14%)