The JCI August 23, 2022

𝐀𝐮𝐠𝐮𝐬𝐭 𝟐𝟑, 𝟐𝟎𝟐𝟐

* 𝐓𝐡𝐞 𝐉𝐂𝐈 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐫𝐚𝐧𝐠𝐞:𝟕,𝟎𝟒𝟎𝐩𝐭 -𝟕,𝟏𝟓𝟎𝐩𝐭  (𝐘𝐞𝐬𝐭𝐞𝐫𝐝𝐚𝐲 𝐜𝐥𝐨𝐬𝐞: 𝟕,𝟏𝟎𝟖𝐩𝐭)

* 𝐖𝐚𝐥𝐥 𝐒𝐭𝐫𝐞𝐞𝐭 𝐞𝐧𝐝𝐞𝐝 𝐰𝐢𝐭𝐡 𝐦𝐚𝐣𝐨𝐫 𝐞𝐪𝐮𝐢𝐭𝐲 𝐢𝐧𝐝𝐢𝐜𝐞𝐬 𝐜𝐥𝐨𝐬𝐞𝐝 𝐥𝐨𝐰𝐞𝐫 𝐛𝐲 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 𝟐%, 𝐦𝐚𝐢𝐧𝐥𝐲 𝐨𝐧 𝐠𝐞𝐧𝐞𝐫𝐚𝐥 𝐰𝐚𝐫𝐫𝐲 𝐦𝐨𝐨𝐝 𝐨𝐧 𝐭𝐡𝐞 𝐔𝐧𝐢𝐭𝐞𝐝 𝐒𝐭𝐚𝐭𝐞𝐬 (𝐔𝐒) 𝐞𝐜𝐨𝐧𝐨𝐦𝐲 𝐚𝐧𝐝 𝐨𝐭𝐡𝐞𝐫 𝐜𝐨𝐮𝐧𝐭𝐫𝐢𝐞𝐬’ 𝐰𝐨𝐫𝐥𝐝𝐰𝐢𝐝𝐞,  𝐰𝐡𝐢𝐜𝐡 𝐚𝐫𝐞 𝐜𝐥𝐨𝐮𝐝𝐞𝐝 𝐰𝐢𝐭𝐡 𝐦𝐚𝐧𝐲 𝐮𝐧𝐜𝐞𝐫𝐭𝐚𝐢𝐧𝐭𝐢𝐞𝐬

* 𝐓𝐡𝐞 𝐉𝐂𝐈 𝐢𝐬 𝐞𝐱𝐩𝐞𝐜𝐭𝐞𝐝 𝐭𝐨 𝐟𝐥𝐮𝐜𝐭𝐮𝐚𝐭𝐞 𝐚𝐧𝐝 𝐬𝐮𝐩𝐩𝐨𝐫𝐭𝐞𝐝 𝐛𝐲 𝐬𝐭𝐚𝐛𝐥𝐞 𝐔𝐒𝐃𝐈𝐃𝐑 𝐚𝐧𝐝 𝐨𝐢𝐥-𝐜𝐥𝐨𝐬𝐞

Morning,

The Jakarta Composite Index (JCI) today (8/23) is expected to trade between 7,040pt –7,150pt  to hold ground and supported by bargain hunters. The JCI is expected to response on the central bank Bank Indonesia (BI) decision on the reference rate . to be announced this afternoon following August’s Board-of-Governors meeting.

Ten out of 12 institutions have estimated that BI to maintain record-low reference rate at 3.5%, while 2 others estimate an increase of 25bp.  Either way, the JCI is expected to absorb easily, we expect.

Meanwhile, yesterday (8/22) Wall Street ended with the DJIA closed lower by 643 points or 1.9% to 33,064pt, while the S&P500 and the Nasdaq closed lower by 2.1% and 2.6%, respectively. Investors are in cautious anticipating U.S. Federal Reserve Chairman Jerome Powell’s latest comments on inflation at the central bank’s annual Jackson Hole economic symposium (8/27).

At the other end, the yield on the benchmark 10-year Treasury note rose 4basis points at 3.03%, and the 2-year Treasury yield was up 6  basis points to 3.32%, continuing to be in a  yield spread-inversion trend.

Yesterday,  the WTI price ended 27 cents lower at USD90.5/barrel, mainly supported by tight supply along with the news that OPEC+ reserves the right to cut production at any time and in different forms.  Meanwhile, the USDIDR closed  at  IDR14,882 vs. IDR14,858 the previous one.

Cheers,