The JCI June 14, 2022

𝐉𝐮𝐧𝐞 𝟏𝟒, 𝟐𝟎𝟐𝟐

* 𝐓𝐡𝐞 𝐉𝐂𝐈 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐫𝐚𝐧𝐠𝐞: 𝟔,𝟖𝟗𝟎𝐩𝐭 – 𝟕,𝟎𝟑𝟎𝐩𝐭  (𝐘𝐞𝐬𝐭𝐞𝐫𝐝𝐚𝐲 𝐜𝐥𝐨𝐬𝐞: 𝟔,𝟗𝟗𝟓𝐩𝐭)

* 𝐖𝐚𝐥𝐥 𝐒𝐭𝐫𝐞𝐞𝐭 𝐞𝐧𝐝𝐞𝐝 𝐰𝐢𝐭𝐡 𝐦𝐚𝐣𝐨𝐫 𝐞𝐪𝐮𝐢𝐭𝐲 𝐢𝐧𝐝𝐢𝐜𝐞𝐬 𝐜𝐥𝐨𝐬𝐞𝐝 𝐥𝐨𝐰𝐞𝐫 𝐛𝐲 𝐬𝐨𝐦𝐞 𝟒%, 𝐦𝐚𝐢𝐧𝐥𝐲 𝐨𝐧 𝐭𝐡𝐞 𝐟𝐞𝐚𝐫 𝐭𝐡𝐚𝐭 𝐭𝐡𝐞 𝐔𝐧𝐢𝐭𝐞𝐝 𝐒𝐭𝐚𝐭𝐞𝐬 (𝐔𝐒) 𝐞𝐜𝐨𝐧𝐨𝐦𝐲 𝐭𝐨 𝐬𝐭𝐚𝐫𝐭 𝐧𝐞𝐠𝐚𝐭𝐢𝐯𝐞 𝐠𝐫𝐨𝐰𝐭𝐡 𝐭𝐡𝐢𝐬 𝐲𝐞𝐚𝐫 𝐛𝐲 𝐭𝐡𝐞 𝐜𝐨𝐮𝐧𝐭𝐫𝐲’𝐬 𝐥𝐚𝐭𝐞𝐬𝐭 𝐢𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 𝐫𝐚𝐭𝐞 𝐢𝐧𝐝𝐢𝐜𝐚𝐭𝐨𝐫

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

Morning,

The Jakarta Composite Index (JCI) today (6/14) is expected to trade between 6,890pt – 7,030pt  to hold ground and supported by bargain hunters.  Yesterday, the yield of the benchmark 10-year Indonesia government bond closed at 7.29%, a hike of 10bp, or about half as compared to its US counter-part. The JCI today is expected to supported by the indirect impact of the country’s lower-base nature of the economy.

Wall Street yesterday (6/13) ended with the DJIA closed lower  by 876pt, or 2.8% to 30,517pt, while the S&P500 and the Nasdaq closed lower by 3.9% and 4.7%, respectively. Meanwhile, the 10-year Treasury yield jumped 24 basis points to 3.4% marking its biggest move since March 2020.

In Europe, stock indices of the  DAX, FTSE100, CAC, STOXX600, closed lower by 2.4%, 1.5%, 2.7%, and 2.4%, respectively.  Awaiting the reference rates decision from the US central bank during the June FOMC meeting tomorrow (6/15), all stock market seemed to factor in negative growth of the economy to start this year. It was reported that the markets are beginning to bet on a 75bp increase of the FFR vs. 50bp previously.

All the while, this is about time for the risk-averse investors to initiate a gradual jump into the selected stock-picks.

Yesterday  the WTI  price closed higher by 0.5% to  USD120.9/barrel, on a volatile and undecided trading given the sector’s tight supply. Meanwhile, the USDIDR closed  at IDR14,672 vs. IDR14,569  the previous one.

Cheers,