Non-Cyclical Cons. sector relatively outperformed other sectors amid potential economic pressures, making this sector gain 0.62%. Yesterday, the JCI weakened 1.2% to close below the psychological 7,100 level, with foreign investors recording a net buy of IDR 396 billion.
Wall Street closed lower, with Nasdaq down 2.4%, pressured by technology stocks which are sensitive to higher FFR, as the UST10Y yield returned to near the psychological 3% level last Friday.
PT Krakatau Steel Tbk (KRAS) plans to issue Mandatory Convertible Bonds (OWK) Series B, a maximum of IDR 800 billion which will be converted into new shares in KRAS
Megacap growth stock led Wall Street’s gains, with Nasdaq up 2.7%. Investors responded positively to the US labor market which remained strong, as the Initial Jobless Claims data in mid-May fell to 200 thousand claims, the lowest level since 1969.
The Sukuk auction on Tuesday (31/5), recorded an incoming bid of IDR 20.22 trillion, for a total of six series consisting of one SPN-S and five project-based sukuk (PBS).
Effectiveness of 50 Bps FFR Increase. Entering June, investors are once again looking at the effectiveness of the Fed’s Hawkish stance, as US inflation for May period is projected at 0.7% MoM, higher than the previous month’s inflation of 0.3% MoM. NHKSI Research sees that if US inflation has not slowed down, and the Fed reacts more aggressively, it may potentially cause the market to fluctuate.
May inflation is projected at 0.43% MoM, lower than April’s 0.95% MoM inflation, as a number of commodities experienced a decline in prices, such as cooking oil. This projection is inline with BI’s decision to maintain the BI 7DRRR at its lowest level of 3.50%.
Closing May, JCI Heading to 7,100? JCI once again closed above the psychological level of 7,000 yesterday. It had been depressed to a level of 6,974 in the first trading session, but finally closed up 11 points to a level of 7,037. Nine of the eleven sectors rose, with transportation & logistics up nearly 4%.
Investors anticipate BI’s Dovish Stance. JCI was closed higher by 1.6% in the past week, as foreign investors booked a net buy of IDR 1.6 trillion. Investors have anticipated BI’s dovish stance, in contrast with the Fed that increased FFR by 75 bps in 2022.
