Jakarta, CNBC Indonesia – The country’s financial markets are flooded with funds until the second week of January 2022. However inflow The massive scale is not strong enough to make domestic financial assets show a positive performance.
In the stock market, foreign investors have recorded net buying (net buy) amounting to Rp. 3.37 trillion. However, in the government bond (SBN) market, foreigners actually relinquish their ownership in the country’s securities.
Even though there are inflow In the stock market, the performance of the Composite Stock Price Index (JCI) only rose slightly by 0.08% in the past week.
Yesterday (13/1) JCI closed up 0.17% at the level of 6,658.36. Foreign net buy IDR 587.9 billion in all markets. Throughout trading, JCI tends to move in the red zone.
However, in the last hour before closing, JCI rebound and managed to close the trade with appreciation.
Meanwhile in the SBN market, the price of government bonds for 10 and 20 year tenors tends to strengthen. Investors are hunting for long-term tenors again after Fed boss Jerome Powell gave his testimony before the US Senate.
On this occasion, Jay Powell gave an illustration that the US central bank is ready to raise its benchmark interest rate to tame high inflation.
To note, US inflation in December 2021 recorded an increase of 7% year-on-year (yoy) and became the highest increase in the last 4 decades.
However, the market had anticipated the rise in inflation, so that pressures on financial markets tended to ease for the short term in the last few trading days.
Turning to the foreign exchange (forex) market, the flood of foreign funds in the Indonesian financial market, especially in the equity market, boosted the performance of the rupiah.
On the spot market, the rupiah exchange rate closed up 0.17%. Yesterday, for US$ 1, it was priced at Rp. 14,290/US$.
Finally, the rupiah fell back to below Rp. 14,300/US$ after being close to Rp. 14,300/US$ this week.
According to the MNC Sekuritas research report entitled Anticipating FFR Hikes : Favor Stock Over Bond, both global and domestic stocks tend to be less sensitive to the Fed’s monetary policy cycle when compared to government bonds.
So it is only natural that even in Indonesia, the financial assets that are being hunted by foreign investors are stocks instead of government bonds.
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