Jakarta, CNBC Indonesia – The Indonesian financial market is compact green in response to the decision of Bank Indonesia (BI) to maintain its benchmark interest rate. Both the stock market, currency, and compact bonds move positively.
The Composite Stock Price Index (JCI) closed up 0.2% at 6,998.27 and was close to the psychological level of 7,000.
JCI remains green even though foreign investors make net sales (net sell). Foreigners recorded net sales (net sell) of Rp. 311.45 billion in the regular market.
Shares of PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI) and PT Telkom Indonesia (Persero) Tbk. (TLKM) are mostly released by foreigners with net sell Rp 164 billion and Rp 55 billion, while HRUM and ADMR shares were the most bought up by foreigners with net buy respectively Rp 50 billion and Rp 32 billion.
Yesterday’s index transaction value reached around Rp. 15.7 trillion, involving 24.5 billion shares. A total of 185 stocks rose, 332 stocks fell, while 166 stocks were stagnant.
As is known, BI maintained its benchmark interest rate at 3.50% yesterday. BI’s decision is in line with market expectations, which predict that the Indonesian central bank will maintain its benchmark interest rate due to controlled inflation.
BI’s decision injects positive sentiment because with interest rates not rising, household consumption, credit demand, and economic growth are expected to be maintained.
Following BI’s decision, stocks in the primary consumer goods, banking and construction sectors shot up. With interest rates maintained, consumption growth and credit demand are expected to be well maintained. The burden of loan interest rates is also expected not to soar.
Shares of PT Chaoren Pokphand Indonesia Tbk. (CPIN) rose 3.67%, shares of PT Japfa Comfeed Indonesia Tbk. (JPFA) jumped 3.08%, PT Indofood Sukses Makmur Tbk. (INDF) rose 2.15%, Unilever Indonesia rose 1.43%, and Mayora Indah rose 1.08%.
Telecommunications sector shares also surged yesterday with PT XL Axiata Tbk. (EXCL) led the gain by 7.66%, followed by Smartfren Telecom (FREN) which rose 4.76% and TLKM rose 2.72%.
Stock XL shot after Axiata Group Berhad and EXCL officially acquired 66.03% shares of PT Link Net Tbk. (LINK).
The movement of the JCI also followed the majority of the major stock indexes of the Asian Continent which ended in the positive zone today.
Japan’s Nikkei Index closed up 0.08%, China’s Shanghai Composite Index jumped 1.62%, Hong Kong’s Hang Seng gained 1.26%, Australia’s ASX 200 gained 0.31%. However, Singapore’s Straits Times fell 0.02% and South Korea’s KOSPI slumped 1.22%.
The good news also spread to the rupiah. Garuda currency appeared strong in trading Thursday (23/6/2022). Against the United States (US) dollar, the rupiah has never weakened throughout the day.
Referring to Refinitiv data, the rupiah closed 0.20% higher at Rp 14,835/US$. The strengthening of the rupiah became a breath of fresh air after slumping since last week.
Since Monday last week (13/6/2022), the rupiah has always been defeated by the United States (US) dollar, except on Tuesday this week and last Thursday.
The rupiah collapse was triggered by the 75 bps increase in The Fed Funds Rate (FFR) on Thursday last week.
Apart from BI’s decision, the strengthening of the rupiah was also driven by the improving performance of Asian currencies against the US dollar. The majority of Asian currencies strengthened on Thursday (23/6/2022) so that greenback lackluster, including the Australian dollar, yen, renminbi, Thai bhat and Indian rupee. Some of the weaker Asian currencies include the Korean won and the Malaysian ringgit.
From the bond market, Government bonds or Government Securities (SBN) are again being hunted by investors. This is indicated by the strengthening of prices and sloping yields (yield).
The majority of investors are busy chasing SBN again today, marked by falling yields (yield) in almost all SBN tenors. Of the seven series of SBN, all sloped except for FR0067 with a 25-year tenor, which was stagnant.
The sharpest decline occurred in the FR0090 series, which was 14.9 basis points (bp) to 6.61%, followed by the 20-year FR0092, which fell 10 bp to 7.29%. Yield The 10-year tenor FR0091 series fell 6.3 bp to 7.43%, the lowest since last week.
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