Newsletter
- The JCI was still unable to move fast again, while the rupiah and SBN recorded strengthening last Thursday.
- Wall Street’s performance as a mecca for world stock exchanges was also disappointing. Market players were still worried that the Fed would again be aggressive in raising interest rates.
- Coal prices are very volatile this week, even throughout the year it has fallen by around 50%.
Jakarta, CNBC Indonesia – The Composite Stock Price Index (IHSG) had to end lower last Thursday, even though almost all of trading was in the green zone. Meanwhile, the rupiah and Government Securities (SBN) have successfully strengthened.
On Friday’s trading (10/2/2023), there is a risk that the three will fall again, due to a lot of negative sentiment from external and domestic, which is discussed on page 3 of this newsletter.
JCI yesterday ended down 0.62% to 6,897.36. A total of 316 shares fell, 212 shares rose, and 204 other shares flat. The transaction value reached IDR 10 trillion involving more than 36.58 billion stock transactions.
The decline in the JCI towards the close of trading could not be separated from the falling shares of PT Gojek Tokopedia Tbk (GOTO), PT Telkom Indonesia Tbk (TLKM) PT Astra International Tbk (ASII), Merdeka Copper and Eagle Crown.
Meanwhile, the rupiah managed to slightly strengthen 0.03% against the US dollar to IDR 15,090/US$. Then SBN in all tenors yield yield (yield) decrease.
The movement of bond prices is inversely proportional to the yield. When the price goes up, the yield goes down, and vice versa. When the price goes up, it means there is buying action.
Domestically, the release of retail sales data was a little disappointing. Bank Indonesia (BI) reported retail sales in December only grew 0.7% year-on-year (yoy), far below the previous month’s 1.7% (yoy).
However, BI predicts that retail sales in January will increase by 1.7% (yoy). The previous day, BI reported the January 2023 Consumer Confidence Index (IKK) which rose to 123, higher than 119.9 in December 2022.
“Strengthening consumer confidence in January 2023 was driven by the Consumer Expectation Index (IEK) which recorded an increase in all its constituent components, especially the Business Activity Expectation Index and Job Availability Expectation Index,” said the Head of the Bank Indonesia (BI) Communication Department, Wednesday (8/ 2/2023).
The increase in CCI could be an indication that consumers will increase spending. Given that household consumption contributes around 50% of GDP, an increase in the CCI could provide positive sentiment to the financial market.
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