Wall Street closed higher by more than 1% in the last three trading days, supported by the certainty of a 25 bps increase in the Fed Funds Rate (FFR), in line with market expectations. The increase was also driven by easing fears of Russian default. The speculations of a Russian default eased after debtors received payments on Russian coupon bonds maturing this week.
The certainty that Bank Indonesia (BI) maintains the BI Seven Days Reverse Repo Rate (BI 7DRRR) at 3.50%, supports the strengthening of rupiah appreciation by 0.2% yesterday. JCI closed lower by 28 points, or 0.4% to 6,964, with the financial sector leading the decline. This weekend, we project the JCI to move upward with a range of movement of 6,900 to 7,080.
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