The increase in Loan Loss Provision put pressure on banking profits. Investors are keeping a close eye on the ability of US banks to manage the Loan Loss Provision, as recovery from the pandemic paves the way for a possible recession. Wall Street closed lower earlier in the week against the Big Bank Earnings Result 2Q22 this week, with the S&P 500 Banking Index down 1%. Investors are also waiting for economic data: inflation data for both the CPI and PPI, Retail Sales and Industrial Production, ahead of the discourse of the second 75 bps FFR hike in a row at the end of July. Aggressive Hawkish becomes a policy that steered the already cooling US economy into recession.

Healthcare rose 2%, in line with the Long Term Agreement for the Pharmaceutical Subsector that anticipates the depreciation of rupiah. Meanwhile, KLBF is one of the pharmaceutical stocks that were in great demand by foreign investors yesterday. Meanwhile, the JCI closed down 18 points to a level of 6,722 earlier in the week, with Technology leading the sectoral decline, down 0.9%. Investors responded negatively to June Retail Sales data which fell 2.1% MoM 2%, as June’s high inflation reached 0.61% MoM (Vs. May 0.40% MoM) and 4.35% YoY (Vs. May 3, 55% YoY). NHKSI Research projects that the JCI will move upward in the range of 6,600-6,800.

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