Today’s Outlook:

• The S&P 500 closed below 5,000 on Friday (19/04/2024), marking the sixth consecutive day of declines as Netflix and Nvidia shares fell, causing the Nasdaq to lose 2.1%. Netflix announced that it would stop reporting quarterly subscriber data, causing its shares to drop more than 9%. Other tech giants such as Amazon, Microsoft, Alphabet, Apple, and Meta Platforms also moved in the red. Nvidia plummeted 10%, continuing its recent bearish trend ahead of its earnings report. Meanwhile, the share price of American Express rallied 6% after beating first-quarter profit estimates, while Procter & Gamble shares edged up 0.5% despite sales figures falling short of expectations. Paramount Global shares jumped 13% amid a potential acquisition battle, while Tesla shares fell nearly 2% due to the recall of nearly 3,900 Cybertrucks units due to damage to the accelerator pedal.
• Bitcoin fluctuated around $60,000 as investors anticipated the upcoming halving event, an event that occurs every four years and reduces the production rate of bitcoin. Meanwhile, growing pessimism that the Federal Reserve will cut interest rates soon also weighed on sentiment.
• Equity markets have struggled to sustain the five-month rally that started in November, partly due to expectations that the Fed will cut interest rates in the first half of the year. On the other hand, some higher-than-expected recorded inflation data, strong labor market data, geopolitical tensions in the Middle East that triggered a rise in oil prices, as well as comments from Federal Reserve officials, including Chairman Jerome Powell, have caused market participants to push back the central bank’s rate cut expectations.
• The S&P and Nasdaq have dropped for six consecutive sessions, the longest losing streak for each since October 2022, with the S&P now down 5.46% from its record close on March 28.
• Chip-related stocks, which have been the best performers this year given their affiliation with artificial intelligence (AI), also fell simultaneously, with the Philadelphia Semiconductor Index down 4.12%. The index recorded its biggest weekly percentage decline in almost 2 years by depreciating by 9.23%.
• INDONESIA will monitor the March Trade Balance figure which will most likely deliver a surplus, compared to the previous figure of USD 870mn, as Import growth far outpaced Exports. JCI has touched the MA20 Support exactly at the 7037 Low last Friday, making that level the closest Support at the moment, up to the 7000 round figure as the psychological level. Although we expect a minor technical rebound, NHKSI RESEARCH would like to remind that foreign net sell in the last week was massive with capital outflow of IDR 8.27 trillion (all markets), causing Indonesian market to lose its appeal due to recent global macroeconomic developments. NHKSI RESEARCH also advises to continue with the Wait & See attitude, but do not forget to pay close attention to trading opportunities based on sector rotation.

Company News

• TLKM: Profit Slumped 5.7% in 1Q24
• PRDA: Preparing IDR250 Billion CapEx
• WIIM: IDR494 Billion Profit

Domestic & Global News
• Sri Mulyani & BI’s Strategies when Rupiah Collapses and IDR 21.46 Trillion Foreign Capital Flows Away from RI
• Five Rockets Fired From Iraq Towards US Military Base in Syria

Download full report HERE.