SUN Market Mixed Ahead of US Inflation Data. Benchmark SUN yield FR0093 is nearing the psychological 7% level, with FR0091 dropping 1.4Bps to 7.12%. Prices for the October 2022 Brent and WTI crude contracts, each down more than 9% a week, could indicate that inflation has peaked. The Bloomberg survey projects that the US Headline CPI in July will slope to 8.8% YoY (Vs. Jun. 9.1% YoY). Fears of a global economic recession pressured Brent and WTI oil prices to USD94.12/Barrel and USD87.56/Barrel, the lowest levels before the Russia-Ukraine conflict last February.
Corporate Bonds
SMRA: 1H22 Profit Grows Significantly. PT Summarecon Agung Tbk (SMRA) posted a net profit of IDR254.6 billion in 1H22 (vs 1H21: IDR108.5 billion). Revenue grew 10.98% to IDR2.7 trillion. Meanwhile, cost of goods sold and direct expenses slightly increased by 0.3% to IDR1.276 trillion. (Emiten News)
Domestic Issue
Consumer Confidence in the Indonesian Economy Declines. Bank Indonesia (BI) noted that the consumer confidence index (IKK) towards the Indonesian economy fell from 128.2 to 123.2 in July 2022. This is based on a BI consumer survey conducted last month. Despite the decline, consumer optimism about economic conditions was maintained, as the survey results are in the optimistic area or more than 100. It is recorded that the July 2022 Consumer Expectation Index (IEK) for the estimated economic conditions in the next 6 months is 135.5. The figure is still fairly strong, although lower than the previous month, at 141.8. (CNN Indonesia)
Recommendation
Investors eye on the pressure of Consumer Confidence. BI noted that Indonesia’s Consumer Confidence Index in July fell to a level of 123.2 (Vs. Jun. 128.2), indicating that people are starting to reduce their consumption portion, as rising inflation makes consumers pay the same or even more costs for the same or even more products. a little.
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