Investor response was mixed, amid the August CPI Headline survey exceeding 5% YoY. BI’s 7DRRR +25 bps hike in August provides certainty amid rising domestic inflation. Based on a Bloomberg survey, August’s YoY Headline CPI surpassed the 5% level (Vs. Jul. 4.94%), and Core YoY CPI neared the 3% level (Vs. Jul. 2.86%). However, the absence of an increase in Administered Prices and the decline in a number of food commodity prices in August made NHKSI Research project that this period has the opportunity to record deflation.
Corporate Bonds
EXCL: Profit Down 14.12% in 1H22. PT XL Axiata Tbk (EXCL) recorded a net profit of IDR614.91 billion in 1H22 or down 14.12% YoY. Meanwhile, revenue grew 8.4% to IDR14.074 trillion, supported by an increase in data and digital services revenue by 9.01% to IDR12.866 trillion. (Emiten News)
Domestic Issue
WMUU: Profit Slashed 15.76% in 1H22. PT Widodo Makmur Unggas Tbk (WMUU) recorded net profit of IDR74,451 billion in 1H22 or decreased by 15.76% YoY. Meanwhile, sales declined by 1.7% to IDR1.286 trillion, supported by an increase in carcass sales of 0.7% to IDR1.218 trillion. (Emiten News)
Recommendation
The effect of the Jackson Hole symposium results will be seen next Monday, making a number of investors to take profit. The annual Jackson Hole symposium began on Thursday, and the Fed chair is scheduled to give a speech on Friday. Market expectations are split, assuming US Headline CPI Jun. YoY has peaked +9.1% (Vs. Jul. +8.5%), some economists project September FFR increase of only +50Bps to 2.75%-3.00%.
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