JCI Nudged Up 0.1%
Last week, varied sentiments colored Indonesia’s equity markets. The most awaited sentiment is the final tread deal of between the U.S. and China. China, in last week’s early days, decided to postpone the hike of 25% in import tariffs imposed on the U.S. automotive products, whose tariffs supposedly took into effect on April 2nd, 2019. Then, in the mid week, creeping higher global crude prices flooded equity markets. Crude prices rallied as the US PMI figure inched higher to 55.3 (vs. February’s of 54.2), while Chinese PMI surged to 50.8 to its last 8-month highest figure. The rally in global crude prices drove agriculture stocks higher and positioned them as last week’s top gainers (+3.8%). Property and construction stocks were another last week’s top gainers (+3.5%) due to property earnings, higher-than-consens us. The miscellaneous industry posited at the third top gainer (+2.8%), driving by positive sentiments of the postponed increase in import tariffs on the U.S. automotive products. On the weekends, the Asian Development Bank (ADB) estimate of Indonesia’s stagnant economic growth at 5.2% in 2019 halted JCI to rally. Thus, JCI only nudged up 0.1% last week.
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