The JCI September 21, 2023

𝐒𝐞𝐩𝐭𝐞𝐦𝐛𝐞𝐫 𝟐𝟏, 𝟐𝟎𝟐𝟑

• 𝐓𝐡𝐞 𝐉𝐂𝐈 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐫𝐚𝐧𝐠𝐞: 𝟔,𝟗𝟒𝟎𝐩𝐭 – 𝟕,𝟎𝟓𝟎𝐩𝐭 (𝐘𝐞𝐬𝐭𝐞𝐫𝐝𝐚𝐲 𝐜𝐥𝐨𝐬𝐞: 𝟕,𝟎𝟏𝟐𝐩𝐭)

• 𝐖𝐚𝐥𝐥 𝐒𝐭𝐫𝐞𝐞𝐭 𝐞𝐧𝐝𝐞𝐝 𝐰𝐢𝐭𝐡 𝐛𝐫𝐨𝐚𝐝𝐞𝐫-𝐛𝐚𝐬𝐞𝐝 𝐞𝐪𝐮𝐢𝐭𝐲 𝐢𝐧𝐝𝐞𝐱𝐞𝐬 𝐜𝐥𝐨𝐬𝐞𝐝 𝐥𝐨𝐰𝐞𝐫 𝐛𝐲 𝐚𝐫𝐨𝐮𝐧𝐝 𝟏% 𝐚𝐬 𝐦𝐨𝐫𝐞 𝐭𝐫𝐚𝐝𝐞𝐫𝐬 𝐰𝐞𝐫𝐞 𝐩𝐫𝐢𝐜𝐢𝐧𝐠-𝐢𝐧 𝐭𝐡𝐞 𝐧𝐞𝐱𝐭 𝐡𝐢𝐤𝐞𝐬 𝐨𝐟 𝐩𝐨𝐥𝐢𝐜𝐲 𝐫𝐚𝐭𝐞 𝐭𝐡𝐢𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐔𝐧𝐢𝐭𝐞𝐝 𝐒𝐭𝐚𝐭𝐞𝐬 (𝐔𝐒)

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

Morning,

The Jakarta Composite Index (JCI) today (9/21) is expected to trade between 6,940pt–7,050pt to attempt higher and supported by bargain hunters.  The JCI today is expected to respond to the announcement of the country’s latest monetary policy stance of the central bank Bank Indonesia following its September policy meeting. Bank Indonesia is widely expected to keep the current policy rate BI7DRR unchanged at 5.75%.

Meanwhile,  yesterday  (9/20) on Wall Street, the DJIA closed lower by 77 points or 0.2% to 34,441pt, while the S&P500 and the Nasdaq Composite closed lower by 0.9% and 1.5%, respectively.

Excerpted from the press conference following the completion of September’s FOMC meeting, Federal Reserve Chairman Jerome Powell stated that the US economy had come in stronger than expected, despite a 5-1/4  percentage points increase in the policy rate since since March last year.  The FOMC in the September meeting decided to keep the current target policy rate unchanged at the level of 5.25 – 5.5% and stated a median of the appropriate target rate at 5.6% at the end of this year.

The 10-year US Treasury yield added 3 basis points to 4.393%. Similarly, the 2-year Treasury yield increased by   6 basis points to  5.167%.

Yesterday, the price of the WTI  futures fell 1.0% at USD90.3/barrel, mainly on consolidation as traders turned to a wait-and-see position along with the latest demand-side dynamic in the sector.    Meanwhile, the USDIDR closed at IDR15,396 vs. IDR15,373 the previous one.

Cheers,