JCI had a landslide 1.5%, foreigners took away Rp 200 billion

Jakarta, CNBC Indonesia– The Composite Stock Price Index (JCI) continued to weaken at the beginning of the second trading session on Friday (10/6/2022). Investors do not dare to be aggressive because they are still waiting for the release of inflation data for the Uncle Sam country for the period of May 2022 tonight, Indonesian time.

JCI weakened 1.39% at 7,085.24. The JCI even fell more than 1.5% to its lowest position of 7,070.11. The trading value was recorded at Rp 11.8 trillion, involving more than 20 billion shares.

Foreign investors recorded net sales (net sell) jumbo worth IDR 248.65 billion in the regular market. While net selling in all markets, the value had touched the range of Rp 200 billion.

The two stocks they are hunting today are PT Bank Mandiri (Persero) Tbk (BMRI) and PT Astra International Tbk (ASII) with a net purchase value of Rp 106 billion and Rp 46 billion, respectively.

Meanwhile, the shares most sold were PT Bank Negara Indonesia Tbk (BBNI) and PT Aneka Tambang Tbk (ANTM) with net sales of Rp 135 billion and 56 billion, respectively.

For today’s trading, sentiment related to inflation, monetary policy to the trimming of global economic growth projections by various world financial institutions such as the World Bank are still the sentiments that move the market.

Market participants also still tend to install fashionwait and see. Inflation data for the United States (US) for the May period will be released tonight at Indonesia time. Therefore, investors don’t seem to dare to play aggressively in the stock market.

Collected market consensusReutersestimated US inflation last month at 8.3% (yoy), unchanged from the previous month. Inflation remains at a very high level. If inflation is still high, it is almost certain that the US central bank (The Federal Reserve/The Fed) will be more confident in raising its benchmark interest rate aggressively.

Citing the CME FedWatch, the market expects Chairman Jerome ‘Jay’ Powell and colleagues to raise the Federal Funds Rate by 50 basis points (bps) to 1.25-1.5% at this month’s meeting. The chance in that direction reaches 94.9%.

An increase in the benchmark interest rate will be a negative sentiment in the stock market. High interest rates will make the issuer’s expansion costs more expensive so that profits will be eroded.

CNBC INDONESIA RESEARCH TEAM

[Gambas:Video CNBC]