The JCI September 22, 2022

𝐒𝐞𝐩𝐭𝐞𝐦𝐛𝐞𝐫 𝟐𝟐, 𝟐𝟎𝟐𝟐

* 𝐓𝐡𝐞 𝐉𝐂𝐈 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐫𝐚𝐧𝐠𝐞: 𝟕,𝟏𝟏𝟎𝐩𝐭 – 𝟕,𝟐𝟓𝟎𝐩𝐭   (𝐘𝐞𝐬𝐭𝐞𝐫𝐝𝐚𝐲 𝐜𝐥𝐨𝐬𝐞: 𝟕,𝟏𝟖𝟖𝐩𝐭)

* 𝐖𝐚𝐥𝐥 𝐒𝐭𝐫𝐞𝐞𝐭 𝐞𝐧𝐝𝐞𝐝 𝐰𝐢𝐭𝐡 𝐦𝐚𝐣𝐨𝐫 𝐞𝐪𝐮𝐢𝐭𝐲 𝐢𝐧𝐝𝐢𝐜𝐞𝐬 𝐜𝐥𝐨𝐬𝐞𝐝 𝐥𝐨𝐰𝐞𝐫 𝐛𝐲 𝐚𝐥𝐦𝐨𝐬𝐭 𝟐%, 𝐦𝐚𝐢𝐧𝐥𝐲 𝐚𝐬 𝐭𝐡𝐞 𝐅𝐞𝐝𝐞𝐫𝐚𝐥 𝐑𝐞𝐬𝐞𝐫𝐯𝐞 𝐢𝐧𝐝𝐢𝐜𝐚𝐭𝐞𝐝 𝐭𝐡𝐚𝐭 𝐦𝐨𝐫𝐞 𝐡𝐢𝐤𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐫𝐞𝐟𝐞𝐫𝐞𝐧𝐜𝐞 𝐫𝐚𝐭𝐞𝐬 𝐭𝐨 𝐞𝐱𝐩𝐞𝐜𝐭 𝐭𝐨 𝐜𝐨𝐦𝐛𝐚𝐭 𝐭𝐡𝐞 𝐔𝐧𝐢𝐭𝐞𝐝 𝐒𝐭𝐚𝐭𝐞𝐬 (𝐔𝐒) 𝐜𝐮𝐫𝐫𝐞𝐧𝐭 𝐢𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 𝐫𝐚𝐭𝐞𝐬

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

Morning,

The Jakarta Composite Index (JCI) today (9/22) is expected to trade between 7,110pt –7,250pt  to hold ground and is supported by bargain hunters.

Today, the JCI is expected to respond to the decision of Indonesia’s central bank Bank Indonesia (BI) concerning the country’s reference rates BI7D-RR, currently at 3.75%. Last month BI increased the rate by 25 basis points for the first time since February last year for pre-emptive and forward-looking objectives.

BI is widely expected by economists to go for another hike of 25 basis points, at the least, given the latest external developments.  

Meanwhile, yesterday  (9/21) Wall Street ended with the DJIA closed lower by 523 points or 1.7% to 30,706pt, while the S&P500 and the Nasdaq closed lower by 1.7% and 1.8%, respectively.

Yesterday, following September’s FOMC, the US Central Bank the Federal Reserve on raised benchmark interest rates by another three-quarters of a percentage point to a range of 3%-3.25%, the highest it has been since early 2008, in an aggressive move to bring down the country’s inflation rate.

On the other end, the yield on the benchmark 10-year Treasury note climbed 7 basis points to close at 3.64% yesterday. The 2-year Treasury yield rose by 15 basis points at 4.11%, trading around levels not seen since 2007.

Yesterday, the price of  WTI for the October contract closed lower by 1.2% at  USD82.9/barrel, also being driven by the ongoing strength of the USD against its major rivals (today at 111.67 vs. 110.8 yesterday) following an increase of 75bp of the benchmark US rate by the country’s central bank. Meanwhile, the USDIDR closed at  IDR15,011 vs. IDR14,975 the previous one.

Cheers,