Today’s Outlook:
• Global stock indices fell for the second consecutive session on Friday (21/06/24), weighed down by weakness in Technology stocks, while the US DOLLAR hit its highest level since early May as a gauge of US business activity edged up to a more than 2-year high. S&P Global said its US Composite PMI Output Index, which tracks the manufacturing and services sectors, edged up to 54.6 this month, the highest since April 2022, from 54.5 in May. Wall Street, S&P 500 and Nasdaq closed slightly lower as NVIDIA shares lost steam & fell over 3% dragging the overall Technology sector down. Despite the setback, the chipmaker remains up around 155% on the year as a strong rally in AI related sectors has lifted the S&P500 and NASDAQ to record highs in recent days, so it was no surprise that both indices consolidated for a while, edging down no more than 0.2%. Only the DJIA edged higher by 0.04%. MSCI’s index of worldwide stocks fell 0.37%, to 801.37 after touching an intraday record of 807.17 on Thursday but is still on track for a third consecutive week of gains. Other economic data on the housing market showed US Existing Home Sales fell for the third consecutive month in May as record-high prices and rising mortgage rates kept potential buyers at bay.
• US TREASURY YIELD edged higher after the data came out, the 10-year US Treasury yield moved 0.1 basis points higher at 4.255%. The 10-year yield recorded its first weekly gain after 2 consecutive declines.
• EUROPE & ASIA MARKETS: EUROPEAN stocks closed lower, pressured by declines in Bank stocks and Technology stocks on the backdrop of economic data showing EURO ZONE business growth slowed sharply this month. The STOXX 600 index fell 0.73%, while the FTSEurofirst 300 Europe index fell 15.59 points, or 0.76%. JAPAN data on Friday indicated that demand-driven inflation in the country slowed in May, dimming the prospects of further interest rate hikes from the Bank of Japan. Bank of Japan Deputy Governor Shinichi Uchida said on Friday that the central bank is willing to raise interest rates if the economy and prices move in line with its forecasts, but signs of weakness remain.
• The DOLLAR INDEX, which measures the greenback’s strength against a basket of other major currencies, rose 0.17% to 105.81; the EURO was down 0.09% at USD 1.069. Against the Japanese YEN, the Dollar strengthened 0.43% to 159.59. Such levels have not been seen since late April when Japanese authorities intervened to stop the Yen’s fall.
• COMMODITIES: The stronger Dollar helped to lower OIL prices, with US WTI down 0.69% at USD 80.73/barrel and BRENT down 0.55% and settling at USD 85.24/barrel. However, both crude oil benchmarks managed to close up around 3% last week.
• JCI: Thanks to the FCA revision and the rise of big bank stocks, JCI lifted back above the MA10 Resistance that has overshadowed the downtrend since late May. This upside momentum was created thanks to the support of IDR 1.15 trillion foreign net buy (all market), a rare event lately; just when RSI was already immersed in OVERSOLD territory. Thus NHKSI RESEARCH sees the opportunity for JCI to continue strengthening to the following targets: 6980-7000 is open again; where the nearest Support 6850 can now be used as an entry point for BUY ON WEAKNESS.
Company News
• UNVR: Unilever Disburses the Remaining Dividend of IDR 2.93T
• ALDO: Alkindo Naratama Gets Approval to Distribute Dividends and Stock Split 1:2
• BEER: Issuer of Cap Tikus Alcohol (BEER) Shares Minimalist Dividends
Domestic & Global News
Pertamina Boss Requests Special Gas Price Incentive for Gas Network Development
Germany Calls Proposed Tariffs on Chinese Imports Not a Punishment from the European Union
Download full report HERE.
