Poor performance and margin pressures for a number of retail companies weighed on Wall Street’s stock markets. The Nasdaq and S&P 500 fell sharply to -4.73% and – 4.04% respectively. In addition to rising fuel prices that affect shipping costs, retail companies are faced with high inflation that exceeds wages, eroding consumer purchasing power. Wall Street’s pressure was exacerbated by selling off large-cap growth stocks that are sensitive to rising interest rates, following Powell’s speech last Tuesday, committing to tackle high US inflation.
Trade balance surplus in line with export growth, with maintained imports, became a positive catalyst for yesterday’s trading. JCI rose more than 2%, briefly touching the psychological level of 6,800, before finally closing at 6,793. Nine of the eleven sectors strengthened, led by technology (+5.57%) and basic materials (+2.21%), resulting in JCI consistently moving in the green throughout trading. The JCI movement was in the midst of the depreciation of the rupiah which was approaching the psychological level of IDR 14,700. NHKSI Research projects that the JCI will move upward in the range of 6,700-6,900.
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