Expectations that inflation falls to 5.3% was responded positively by Wall Street with the Dow Jones rising more than 800 points at the weekend. U. of Mich. data
shows the consumer’s expectation of June 1Y Inflation at 5.3% (Vs. May. 5.4%). Inflation remains a concern, as rising consumer goods prices erode living standards, and weaken the economic outlook. Current measurement of consumer sentiment, U. of Mich. Current Condition June, is down to 53.8 (Vs. May. 55.4); and 6-month forward expectations index, the U. of Mich. Expectations June, rose to the level of 47.5 (Vs. May. 46.8).
The technology and cyclical consumer sectors led the sectoral gains, and the BI 7DRRR that remains low is a positive sentiment for technology stocks that had relatively high DER at the beginning of their development. The beginning of construction of the dam in East Kalimantan, and the main road from the Balikpapan toll road next July, signifies that the basic construction of IKN infrastructure has begun. The infrastructure sector gained more than 1% last weekend. Meanwhile, JCI stayed in the green zone, surpassing the psychological level of 7,000 or closing up 45 points, in contrast to foreign investors that recorded net sells of IDR 1.1 trillion.
Download full report HERE.