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Weekly Market Review (27 August 2018) - What happened & What's next?

following Indonesia ETF performance and Thursday we saw a decent USD40mn inflow after US listed Indonesia ETF booked gains 5 days in a row. Foreigners (net) bought IDR2.78tn (USD190mn) of Government bonds and USD16mn of equities. Basic Industry and Chemicals (+6.5% WoW) led the gains with Cement, Poultry, and Pulp/Paper industries contributing the major portion. Meanwhile, Infra Utility and Transportation saw the worst performance (-0.3% WoW) driven by Telco. Newsflows to be watched this week: US GDP 2Q18, US PCE, ID Money Supply, CN Manufacturing PMI.
•    Rupiah weakened by -0.25% WoW to Rp 14,655. On the other hand, DXY was on the downward trend closing at 95.1 (-1% WoW) by the end of the week.
•    Additional supply from 28th august auction and IDR weakening to 14.600 per USD is causing bond yield to increase by 2-10 bps last week. 10 years series increased from 7.8% to 7.9%.
•    Foreign investor adding their investment on Indo GB, by approximately Rp2.8 Tn, especially on short tenor series.
•    10 year US Treasury yield held steady at 2.82% after Federal Reserve Chair Jerome Powell said that "further, gradual" rates hikes are appropriate as the economy continues to show signs of strength.

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Foreign net purchases of Indonesia equities