๐๐๐ฒ ๐๐, ๐๐๐๐
๐๐๐ฅ๐ฅ ๐๐ญ๐ซ๐๐๐ญ ๐๐ฅ๐จ๐ฌ๐ข๐ง๐ : ๐๐๐๐ -๐.๐% ๐จ๐ซ ๐๐ฒ ๐๐๐๐ฉ๐ญ ๐๐ญ ๐๐.๐๐๐๐ฉ๐ญ
The DJIA index yesterday (31/5) was closed by 385pt lower or by 1.4% at 24.815pt as had been indicated by Dow Futures earlier. Investors feared that President Donald Trump’sย surprise threat of tariffs on all Mexico imports, amid a worsening trade war with China, could risk sending the U.S. economy into a recession. As such, the yield of 10 year US Treasury slipped again to 2.13% vs. 2.18% the day before vs. 2.5% in early May.
Trump threat on higher tariffs by 5% starting on June 10 for all Mexican imported goods also affected the closing of WTI which fell by 5.5% to USD53.5/barrel. Crude oil ย investors are factoring in that higher tariffs for Mexican goods and services in the US will restrain trade and thus demand for oil.
Cheers,
๐๐ก๐ ๐๐๐
๐๐๐ฒ ๐๐ ๐๐ฅ๐จ๐ฌ๐ข๐ง๐ ๐๐ญ ๐,๐๐๐๐ฉ๐ญ, +๐.๐%
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,