The retail sector supported Wall Street, after a number of retail companies raised their FY22 net profit outlook. The Nasdaq and S&P 500 indexes closed up 2.68% and
1.99%; with the Dow Jones up 1.61%. Investors also believe they have seen inflation peak in March (8.5% YoY), as the results of the FOMC Meeting Minutes suggest the
Fed will not be too Hawkish. The Fed’s attitude is also amid the US GDP 1Q22 which contracted by 1.5% QoQ (Vs. Cons. -1.3% QoQ; 4Q21 -1.4% QoQ), and Initial Jobless Claims in May which remained high at 210 thousand claims.

Ahead of the holiday, the JCI fell 30 points to close below the psychological level of 6,900. Meanwhile, foreign investors recorded a net sell of IDR 145 billion, with the top selling stocks including BBRI. Investors began to observe the impact of the increase in the reserve requirement, especially in the banking sector. BI raised the
Statutory Reserves for Conventional Commercial Banks from 6% (June) to 9% (September). This JCI movement was also in the midst of BI maintaining the BI 7DRRR for the May period at the level of 3.50%, which had been anticipated by market participants earlier.

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