JCI Collapses Again, All Sector Red Stocks

Jakarta, Reportase – At the close of trading session I, Monday (20/3/23) the Composite Stock Price Index (IHSG) ended at 6,624.10 or fell drastically 0.81% on a daily basis.

A total of 330 stocks fell, 186 stocks rose while 184 others flat or unchanged. Until the afternoon break, the transaction value reached around IDR 4.1 trillion involving 11.61 billion shares that changed hands 805 thousand times.

Based on data from the Indonesia Stock Exchange via Refinitiv, almost all sectors are in the red zone, aka weakening. The technology and utility sectors were the sectors that hurt the index the most, falling 1.67% and 1.59% respectively. Only the real estate sector was observed to edge up 0.03%.

In session I this time, PT. GojekTokopedia was observed to be the main weight of the JCI with 15.08 index points. Next, Bank Rakyat Indonesia and Telkom Indonesia were also a burden with a decrease of 6 index points. Bayan Resources and United Tractors, which are shares of mining issuers, weighed on the JCI 4.81 and 3.33 index points respectively.

The banking crisis in the United States (US) is still a market concern to this day. Investors will continue to monitor whether the First Republic Bank case will be the last case or there will be new “victims”, although previously there was good news that 11 US banks intended to help First Republic Bank so that the impact of the crisis would not spread.

In addition, global market attention is focused on the Federal Open Market Committee (FOMC) meeting of the US central bank (Federal Reserve/The Fed) from Tuesday to Wednesday this week local time.

Due to the collapse of Silicon Valley Bank (SVB) and several other US banks, it is predicted that the Fed will no longer be aggressive in raising its benchmark interest rate, which could also benefit the rupiah.

Based on the FedWatch tool owned by the CME Group, market participants see a 62% probability that the Fed will raise interest rates again by 25 basis points (bps). While the remaining 20% ​​probability sees the Fed not raising interest rates.

These expectations reversed quickly after the collapse of the SVB, previously the market believed the Fed would raise interest rates by 50 bps.

Even though market optimism sees US inflation slumping back to 6% last February, The Fed is also considering the condition of the US labor market which is still quite strong, while also looking at the condition of the banking system in the US.

CNBC INDONESIA RESEARCH

[Gambas:Video CNBC]