With large export portion, Energy and Basic Materials led sectoral strengthening last week. The steady depreciation of the Rupiah at IDR15,000/USD has benefited the export-based Basic Materials sector. In addition, the Energy sector also benefited from rising prices for Coal ICE Newcastle and WTI Crude Oil contracts in August 2022, which surpassed the psychological levels of USD400/ton and USD100/barrel respectively, returning investors’ focus to supply shortages, despite fears of a potential global recession. Last week, the JCI closed lower by 0.8% to 6,740, with foreign investors recording a net sell of IDR 2.5 trillion. Meanwhile, Indonesian forex reserves in June rose to USD136.4 billion, supported by the issuance of Samurai Bonds of JPY81 billion, ending consecutive months of decline in reserves.
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