Morning Chatter

KBVS MORNING CHATTER
Friday, 15 November 2024

Headline News :
•    BUMI - Private placement to meet bond obligations
•    ELSA – Possibility to perform better on government' projects
•    TLDN – A IDR107 bn capex for 2 palm oil projects
•    TOBA – Divestment of 2 steam power plants worth USD144 mn
•    DRMA – Strategies to reduce the impact of increasing VAT rate
•    POLU – Expansion into the health and beauty business
        
Market Commentary :
US indices closed lower on Thursday (14/11); DJIA (-0.47%), S&P 500 (-0.60%) and IXIC (-0.63%), dragged down by losses in the industrials, healthcare and consumer goods' stocks. Moreover, Jerome Powell, the Fed' chairman also signaled that the Fed is not in a hurry to cut rates and would take a careful approach to monetary policy easing. While, US latest economic data showed its producer price index for final demand rose 2.4% yoy/0.2% mom, in Oct'24. US labor dept also reported that the US' weekly initial jobless claim was at 217k or better than expected. Thus, USD index rose to 106.84, but US 10-Y bond yield declined to 4.444%.
In Europe, STOXX600 ended 1.1% higher, yesterday driven by the energy and technology' stocks, after EU' latest economic data showed that Euro zone' gross domestic product (GDP) rose by 0.9% yoy/0.4% qoq in 3Q24, which was in line with market' expectation. The data also showed that EU' flash employment grew 1% yoy/0.2% qoq. Moreover, according to Luis de Guindos, ECB' vice president that ECB is likely to have another rate cut, in order to achieve its 2% target. On commodity, both Brent Oil and US WTI rose to USD72.56 /barrel and USD68.70 /barrel, respectively after beaten down in the mid session due to a stronger USD and worries about rising supply amid slow demand growth.
Yesterday, Asian' indices closed mixed, with JCI closed lower (-1.29%), and recorded a IDR795.34 bn net foreign outflow. After 2 days' decline, today, JCI could rebound on DXY' possible decline with lower global oil prices.

Regards, 
KBVS Research Team

 

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