MNCS Morning Navigator
Global Market Highlights
DJIA fell -0.11% on Thursday (25/05), while the S&P500 (+0.88%) and Nasdaq (+1.71%). Wall Street closed mixed amid the market which is still watching the development of the debt ceiling. The positive catalyst came from May-20 initial jobless claims of 229k, or below consensus at 245k indicating a still solid job market. Today, the market will be looking toward several data releases such as: 1) US Core PCE Price Index YoY Apr; 2) US Durable Goods Orders MoM Apr; 3) US Michigan Consumer Sentiment Final May.
· Government debt as of the end of Apr-2023 was recorded at IDR7,849.9 trillion or decreased IDR29 trillion from Mar-2023. MNCS Comment: Debt ratio fell to 38.15% of GDP (vs 39.17% of GDP in Mar-2023), which is still far below the threshold of 60% of GDP. This was supported by a higher debt principal payment ratio than the issuance of SBN and new loans, along with the strong appreciation momentum of the rupiah against major world currencies.
JCI weakened -0.62% to 6,704.23 on Thursday (25/05), followed by net foreign buy reaching IDR31.13 billion. The majority of sectors experienced weakening and weighed on the index, led by the energy sector (-1.97%) followed by the industrial sector (-1.49%). On the other hand, sectors that experienced strengthening were led by the transportation sector (+1.39%) followed by the property sector (+0.46%). The weakening of the index was in line with the majority of Asian exchanges, amid BI's decision to maintain the BI7DRR benchmark interest rate at 5.75%. Negative sentiment came from the FOMC minutes which hinted at the Fed's hawkish stance going forward, as well as observing the hampered development of the debt ceiling. The rupiah closed lower at IDR14,950/USD. We estimate that the JCI will move in the price range of 6,682-6,720. Today's recommendation: BIRD, ERAA, MEDC, TOWR.
Cum Dividend: AMRT (IDR24.06/share), INTP (IDR160/share), TPMA (IDR60/share)
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