The JCI February 10,2023

𝐅𝐞𝐛𝐫𝐮𝐚𝐫𝐲 𝟏𝟎, 𝟐𝟎𝟐𝟑

𝐌𝐢𝐝𝐝𝐚𝐲 𝐍𝐨𝐭𝐞

* 𝐓𝐡𝐞 𝐉𝐂𝐈 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐫𝐚𝐧𝐠𝐞: 𝟔,𝟕𝟗𝟓𝐩𝐭 – 𝟔,𝟖𝟒𝟎𝐩𝐭  (𝐌𝐢𝐝𝐝𝐚𝐲 𝐜𝐥𝐨𝐬𝐞: 𝟔,𝟖𝟎𝟔𝐩𝐭)

* 𝐖𝐚𝐥𝐥 𝐒𝐭𝐫𝐞𝐞𝐭 𝐞𝐧𝐝𝐞𝐝 𝐰𝐢𝐭𝐡 𝐦𝐚𝐣𝐨𝐫 𝐞𝐪𝐮𝐢𝐭𝐲 𝐢𝐧𝐝𝐞𝐱𝐞𝐬 𝐜𝐥𝐨𝐬𝐞𝐝 𝐥𝐨𝐰𝐞𝐫 𝐛𝐲 𝐚𝐥𝐦𝐨𝐬𝐭 𝟏%, 𝐚𝐬 𝐭𝐫𝐚𝐝𝐞𝐫𝐬 𝐩𝐞𝐫𝐜𝐞𝐢𝐯𝐞𝐝 𝐬𝐨𝐟𝐭 𝐥𝐚𝐧𝐝𝐢𝐧𝐠 𝐨𝐧 𝐭𝐡𝐞 𝐔𝐧𝐢𝐭𝐞𝐝 𝐒𝐭𝐚𝐭𝐞𝐬 (𝐔𝐒) 𝐩𝐨𝐥𝐢𝐜𝐲 𝐫𝐚𝐭𝐞𝐬 𝐦𝐨𝐯𝐞𝐦𝐞𝐧𝐭 𝐢𝐬 𝐮𝐧𝐥𝐢𝐤𝐞𝐥𝐲

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

Afternoon,

The Jakarta Composite Index (JCI) today (2/10) was sliding since the opening and touched the session-low of 6,803pt in the final hour to close at 6,806pt (-92 points or 1.3%) in the morning session. Total volume was recorded at IDR5.3tr including the negotiated board of IDR0.2tr.

The JCI’s loss this morning was in line with most of the Asian markets along with traders’ view that the US central bank would turn aggressive-hawkish in the next months.

The top five stocks that dragged the JCI, in the last midday price were Bank Central Asia (IDR8,700/share, -IDR200 or 2.25%, -17.7ppt), Unilever Indonesia (IDR4,600/share, -IDR320 or 6.5%, -8.9ppt), GoTo Gojek Tokopedia (IDR105/share, -IDR7 or 6.3%, -6.0ppt), Telkom Indonesia (Persero) (IDR3,690/share, -IDR80 or2.1%, -5.7ppt), and Bank Mandiri (Persero) (IDR10,150/share, -IDR100 or 1.0%, -3.4ppt).

Yesterday (2/9) on Wall Street, the DJIA closed lower by 249 points or 0.7% to 33,700pt, while the S&P500 and the Nasdaq closed lower by 0.9% and 1.0%, respectively.

The sell-off was also triggered by US central bank  Governor Christopher Waller’s remark yesterday on Wednesday that interest rates could rise by more than investors are expecting. Investors are in monitor for the Federal Reserve’s next move on policy rate given the US’s strong January job report, while the latest headline inflation rate (December: 6.5% YoY)  is still above the long-term target of 2%. Investors will seek more detail on the central bank’s policy from Fed Governor Christopher Waller and Philadelphia Fed President Patrick Harker. Both are slated to speak today Friday afternoon, Eastern time.

The 10-year United States Treasury yield yesterday increased by 3 basis points at 3.664%, and the yield on the policy-sensitive 2-year Treasury settled higher by 3 basis points at  4.484%.

Yesterday (2/9), the price of WTI closed lower by 0.5% at USD77.7/ barrel, mainly supported by the prospect of higher demand in China. The USDIDR closed at  IDR15,120 vs. IDR15,122 the previous one.

Cheers,