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06 April 2020

Weekly Market Review (6 April 2020) - What happened & What's next?

Market update

  • US equities saw the sellers returned and led the indexes into negative territory with industrial and utilities stocks were the worst performers (DJIA-2.7%WoW, S&P-2.1%WoW). President Trump warned of a painful projection for coronavirus deaths will reinforce fears for extended shutdowns that spur more declines in US output and employment. Meanwhile, Asian stock markets may see a mixed trade as some of the hardest-countries have optimisms after some stimulus packages launched and the number of coronavirus deaths and infections are stabilizing while other nations may have to brace for more challenging days ahead. On the domestic side, JCI slightly rebounded by +1.7%WoW as selling pressure from foreign investors eased-off as investors shift to bargain-hunting mode. The most outperformed was basic industry sector (+11.4%WoW) as the petrochemical players (BRPT and TPIA) became the main ‘index-puller’. On the contrary, property sector was the most underperformed, down by -4.9%WoW. News flows within this week: Indonesia foreign reserves, US FOMC Meeting minutes, US PPI, US Initial Jobless claim, US CPI, China PPI, China FDI, China CPI
  • Rupiah depreciated by -1.6%WoW to IDR16,430 in line with EM average. On the contrary, DXY index appreciated by 2.2%WoW to 100.6
  • Concern on widening Indonesia budget deficit made Indonesia bond yield increased by 40-48 bps. 5-years yield increased the most
  • Bond foreign investor increased by IDR0.2 trn over the week.
  • Weak US jobs data report with US payrolls fell by 701,000 in March, marking the first decline in jobs since September 2010, while unemployment rate rose from 3.5% to 4,5%. This made 10 year US treasury yield decreased from 0.72% to 0.62%.

Global news

  • The covid-19 has now infected more than 1.2 million people across the world, a milestone reached just four months after it first surfaced in Wuhan, China (more than 68k people have died, 5.48