The increase in Lending Rate has encouraged the NII. Earlier in the week, Wall Street opened with Gap Up and consistently stood within the Green Zone, with DJIA closing up 550 points. The investors responded positively towards several Big Banks’ 3Q22 Earning Results, which exceeded market expectations and lifted optimism about other sectors’ Earning Results. The Banking sector benefited from a higher Lending Rate as the FFR rose, driving NII growth. Throughout 9M22, the Fed has raised the FFR by as much as 300 Bps, with a 150 Bps rise that occurred only during the 3Q22 period. Wall Street’s appreciation was also supported by strengthening technology stocks and Growth Stocks, as UST2Y and UST10Y yields fell below the level of 4.5% and 4%.
Coal and CPO, again sustained the performance of non-oil and gas exports. Indonesia’s Trade Balance for September recorded a surplus of +USD 4.9 billion (Vs. Aug +USD 5.7 billion). Trade Balance performance, which returned surplus, maintained the domestic economy’s resilience in facing external risks. At the beginning of the week, JCI strongly closed with 16 points, after weakening by 1% at the beginning of the trade. The strengthening of JCI was also supported by the increase in the large cap technology stock price, GOTO. For the record, GOTO is one of the shares owned by blibli.com, which is currently announcing its IPO plan. Amid several sentiments ahead of the BI RDG, NHKSI Research projects JCI to move Bullish or Technical Rebound today.
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