๐๐๐ฒ ๐๐, ๐๐๐๐
๐๐๐ฅ๐ฅ ๐๐ญ๐ซ๐๐๐ญ ๐๐ฅ๐จ๐ฌ๐ข๐ง๐ :ย ๐๐๐๐ +๐.๐% ๐๐ญ ๐๐.๐๐๐๐ฉ๐ญ
The United States (US) stock market was in wait-and-see mode during yesterday (30/5) trading with the DJIA closed by 43 points higher or by 0.2% to 25.170pt, while S&P00 and the Nasdaq both by 0.2% and 0.3%, respectively, following intensifying trade battle between the US and China. Stakeholders currently monitor development which is expected also found during the G20 member countries meeting in Osaka Japan on June 28-29.
In addition, late on Thursday, the US president Trump made a statement that he had planned to increase tariffs by 5% on June 10, ย to all import from Mexico, if the illegal immigrants from Mexico keep coming to the US ย recklessly. The tariffs will gradually increased until illegal migrants issued is solved by Mexico.
The above statement only exacerbated investors worries on global recession. As such investors started factoring in the Federal Reserves possible rate cut decision in the coming June FOMC meeting. Investorsโ shift have been reflected in the lower yields of 10 year US Treasury which was at 2.178% on Friday morning US time vs. 2.5% in the early of May.
Meanwhile, Dow futures fall 200 points indicating a weakening open for Wall Street today.
Cheers,
๐๐ก๐ ๐๐๐
๐๐๐ฒ ๐๐ ๐๐ฅ๐จ๐ฌ๐ข๐ง๐ ๐๐ญ ๐,๐๐๐๐ฉ๐ญ, +๐.๐%
๐ง๐ต๐ฒ ๐๐ป๐ฑ๐ผ๐ป๐ฒ๐๐ถ๐ฎ ๐ฆ๐๐ผ๐ฐ๐ธ ๐๐ ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ ๐๐ถ๐น๐น ๐ฟ๐ฒ๐๐๐บ๐ฒ ๐๐ฟ๐ฎ๐ฑ๐ถ๐ป๐ด ๐ผ๐ป ๐๐๐ป๐ฒ ๐ญ๐ฌ, ๐ฎ๐ฌ๐ญ๐ต
Afternoon,
Against our and consensusโ estimates, the Jakarta Composite Index opened in the green and moved its way up to close by 71poins or 1.2% higher to 6,104pt. Investorsโ perception on Indonesia political climate has been the trigger factor, in our view. The government is perceived to be in control over rival Prabowo-Sandi supportersโ protests on election frauds, with medias reporting that the police has actively arrested those who are presumed assaulting the incumbent president and his allies. Presidential election fraud charges were submitted by the Prabowo-Sandi team to the Constitutional Court on May 24, while decision on the case will be announced on June 28.
Meanwhile, counters under our coverage that experienced significant rebound on May 29, include those of TKIM at IDR9,000 ย (+IDR800 or 9.8%), UNVR at IDR43,500 (+IRD1,000 or 2,4%), MAPI at IDR880 (+IDR40 or 4.8%), and ASII at IDR7,200 (+IDR125 or 1,8%). On May 29 the last trading day before Eid long holiday, foreign net buy was recorded in the amount of IDR332bn and trading value of Indonesia equities reached IDR10.8tr.
At the other end, Wall Street underwent another slide on May 29 with the DJIA closed by 221pt lower or 0.9% to 25.126pt mainly to continue reflecting investorsโ worry on the trade war between the US and China which officially started early December last year. Contrary to consensusโ belief at the time, China has not acted strategically and would go steps further to ensure trade deal is fair. For example China threatened it would cut off rare earth minerals as a countermeasure in the escalated trade battle. The materials are crucial to the production of iPhones, among others. The official newspaper of the Communist Party of China, Peopleโs Daily, wrote in its commentary column the following title, ย โWe advise the U.S. side not to underestimate the Chinese sideโs ability to safeguard its development rights and interests. Donโt say we didnโt warn you!โ
Cheers,