Morning Chatter

KBVS MORNING CHATTER
Friday, 20 December 2024

Headline News :
•    INCO - USD1.2 bn loan for new mining block
•    ENRG - IDR192.2 bn share buyback plan
•    MDKA - 9M24 results miss expectations
•    CAMP – Optimistic positive trends continuing in 2025
•    KAEF – EGMS approves asset collateralization and management changes
•    ADHI – Solo-Jogja toll road opens for free during Christmas and New Year holidays
        
Market Commentary :
US indices closed sideways on Thursday (19/12); DJIA (+0.04%), S&P 500 (-0.09%) and IXIC (-0.12%), dragged down by losses in the basic materials, oil & gas and consumer goods sectors. This came after the Fed cut its FFR on Wednesday, but also with hints that the Fed would only cut 2x (from 4x, previously) its FFR in 2025. Based on US economic data, US' GDP grew 3.1% yoy in 3Q24 or higher than expected. While, US labor dept reported that the US' weekly initial jobless claim was better than expected at 220k. Thus, both US 10-Y bond yield and USD index closed higher at 4.57 % and 108.14, respectively. 
In Europe, STOXX600 ended 1.51% lower yesterday as the Fed's hawkish signal sent investors fleeing riskier assets. Bank of England (BoE) decided not to cut its rates, while Bank of Switzerland and Sweden's Riksbank implementing cuts of 50bps and 25bps. On commodity, both Brent Oil and US WTI fell to USD72.88 /barrel and USD69.91 /barrel, as concerns on growing supply of crude with weaker demand, especially from China, persisted. 
Yesterday, indices in Asia closed mixed, and JCI closed 1.8% lower, with around IDR943.95 bn net foreign outflow. Today, JCI could continue to end lower due to stronger USD and a rebound in global oil prices amidst geopolitical uncertainties.

Regards,
KBVS Research Team

 

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