Consumer pessimism fuels fears of GDP contraction. Nasdaq led Wall Street’s decline, and was down nearly 3%. Consumer expectations, Conf. Board Consumer Confidence in June, fell to a level of 98.7 (Vs. May 103.2) sparking fears of a soft recession, and ahead of the release of next month’s earnings season. Based on Bloomberg survey data, US Annualized GDP QoQ 1Q22 is projected to contract -1.5% (Vs. 4Q21 +6.9%), as supply-chain shocks and high inflation weigh on economic growth.
Approaching the psychological level, JCI closed at 6,996 or fell 20 points. Meanwhile, basic materials and finance led the sector declines, followed by technology which was down 0.99%. Foreign investors took another sell-off yesterday, recording a net sell of IDR 1.5 trillion, and the top three selling shares are BBCA, BMRI, and TLKM. JCI has once again cut its decline in the second session, making the projection today is to move mixed with the range of 6,950 – 7,150.
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