Optimism towards issuers’ performance boosted Wall Street’s strengthening, as Nasdaq rose by 2.1%. Investors are optimistic that the issuers’ profit margin will still strengthen, although high inflation will cut margins. Yesterday’s market movement was amid the statement by the International Monetary Fund (IMF) that it cut world economic growth in 2022 and 2023 projection to 3.6% YoY. This figure is lower than the projection in January 2022 of 4.4% YoY and 3.8% YoY.

BI cut Indonesia’s economic growth projections, pressing the JCI to close below the psychological 7,200 level. Bank Indonesia (BI) cut its projection for domestic economic growth in 2022, to the range of 4.5%-5.3% YoY (Vs. Prev. 4.7%-5.5% YoY). Market participants also anticipate BI’s Dovish stance to maintain the April BI Seven Days Reverse Repo Rate at 3.50%. Meanwhile, investors are starting to look forward to the release of the 1Q22 performance of a number of banking issuers starting this week. NHKSI Research projects that the JCI will move downward within a range of 7,150-7,300.

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