The US stock market bounced back after 4 consecutive days of declines, yet the USD is weakened, and the UST10Y yield touched its highest level this month in reaction to a surprise move from Japan’s central bank that plans to raise their long-term government bond yields by as much as 50bps. This plan has also encouraged an increase in yields on several global bonds, potentially becoming a suppressive factor in Technology sector stocks. The rising prices in several energy commodities create a positive sentiment in the market due to the USD weakening.

Corporate Bonds
BSDE: Pocket an IDR1 T Loan. After obtaining IDR1 trillion and USD2 million loans from PT Bank Negara Indonesia Tbk, PT Bumi Serpong Damai Tbk (BSDE) will continue its expansion in 2023. The company planned to use the funds for business expansion or other corporate actions, as well as a hedging instrument that can protect from the risk of exchange rate fluctuations. (Kontan)

Domestic Issue
The Minister of Finance Releases a Regulation for the Increasing Cigarette Prices. Finance Minister Sri Mulyani officially released a regulation on cigarette prices increasing by an average of 10% starting January 1, 2023. The regulation is stated in the Minister of Finance Regulation Number 191 of 2022, concerning the Second Amendment to the Minister of Finance Regulation Number 192 of 2021 about Excise Rates on Tobacco Products in the Form of Cigarettes, Cigars, Leaf Cigarettes, or Chlorobor and Iris Tobacco. Sri Mulyani said the increase decision had taken the macroeconomic side into account. On the other hand, an increase in the excise rate on tobacco products by an average of 10% will lead to a rise in inflation of 0.1%-2%. (CNN Indonesia)

The JCI is expected to move still in the consolidation phase today, as long as it fails to break through the closest MA10 Resistance. The market participants are still waiting for the Governors Meeting announcement next Thursday regarding the 7DRR interest rate as the last monetary policy this year.

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