Big Cap. Earning Results and the Fed’s Hawkish slowdown supported the JCI to approach the psychological level of 7,000. In addition to Indonesia’s inflation which has not become a concern in the near future, investors appreciate the positives of the Big Four Banks and a number of Consumer Non-Cyclicals Earning Results. Meanwhile, the US economy officially recorded a recession, GDP Annualized 2Q22 contracted -0.9% QoQ (Vs. 1Q22 -1.6% QoQ), in line with consumer spending, with Personal Consumption 2Q22 QoQ +1.0% and Core PCE 2Q22 QoQ +4.4%, slower than the previous quarter. This recession has the opportunity to push the Fed’s policy to be more relaxed in 2H22 and even lead to Dovish in 2023. The past week, the JCI rose almost 1% with Industrial and Energy leading sectoral gains, rising 7.7% each.
Download full report HERE.