Soaring inflation a negative sign for retail stocks. The decline in Walmart shares (WMT.N) by 8%, suppressed the shares of other retail issuers. Walmart revised down its FY22 profit forecast, following price cuts to reduce inventory build-up. Retail stock pressure happened amid weak consumer confidence, Conf. Board Cons. US confidence in July is at 95.70 or the lowest level in 18 months. Wall Street pressure with the Nasdaq down 1.9%, also amid a decline in the property sector. US New Home Sales data in June fell 8.1% MoM to 590K units, in line with high property prices and 30-year Mortgage Rates which have risen 200 bps to 5.54% since January 2022. Another 75 bps FFR hike at the FOMC Meeting pushes Mortgage Rates higher in 2H22. LQ45 Rebalancing, JCI rose 13 points. IDX has evaluated LQ45, including three new shares ARTO, BRIS and INDY; replaced GGRM, PTPP and TKIM. Changes in the composition of
LQ45 shares for the period August 2022 – January 2023 are based on liquidity criteria. Meanwhile, the Banking and Coal Sub-sectors are attractive amid the potential increase in BI 7DRRR and Strong Dollar, which have the opportunity to make a good contribution to the LQ45 Index for the next six months. On the other hand, the strengthening of the JCI yesterday was supported by the release of the large capitalization shares of ARTO and UNVR. The JCI movement was consistent in the green zone yesterday, also in the midst of waiting for the release of the Big Four Bank Earning Results this week. NHKSI Research projects the JCI to move mixed in the range of 6,850-6,910.
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