{"id":2796,"date":"2021-10-18T10:32:52","date_gmt":"2021-10-18T03:32:52","guid":{"rendered":"https:\/\/star-am.com\/?p=2796"},"modified":"2023-08-21T10:27:01","modified_gmt":"2023-08-21T10:27:01","slug":"star-insight-market-update-11-oktober-2021","status":"publish","type":"post","link":"https:\/\/star-am.com\/en\/2021\/10\/18\/star-insight-market-update-11-oktober-2021\/","title":{"rendered":"STAR Insight, Market Update 11 October 2021"},"content":{"rendered":"

<\/span><\/div><\/div><\/div>

Foreign flow to JCI continued<\/b><\/span><\/p>\n

    \n
  • Bond yield propelled by global energy crunch<\/b><\/li>\n
  • Indonesia regained attractiveness as energy prices rise<\/b><\/li>\n
  • The energy sector’s strong performance pushed JCI up<\/b><\/span><\/li>\n<\/ul>\n

    U.S. Equity up, bond yield significantly up<\/b><\/span><\/p>\n

    The deficit of the US Balance of Trade in August 2021 expanded to \u2013US$ 73.3 billion, higher than the market expectation of \u2013US$ 70.8 billion deficits <\/span>as imports increased 1.1%. Last week, jobless claims in the US fell to 326k, <\/span>below the expectation of 348k, while also lower than the prior period of 364k. <\/span>S&P500 and Dow Jones were up by 0.8% and 1.2%, respectively, last week. <\/span>The energy sector led the positive performance of S&P500 with a 5% <\/span>increase, followed by financials, and industrials sectors which booked 2.3%, <\/span>and 1.8% increases, respectively. US Dollar index was moving downward <\/span>last week, decreased by 0.59%, while 10Y treasury yield increasing by <\/span>15.02bps to 1.61%. As the global energy crunch continues, bond yield rose <\/span>significantly last week.<\/span><\/p>\n

    \u00a0<\/span><\/p>\n

    Indonesia to catch up with DM economic growth<\/b><\/span>
    \n<\/span><\/b><\/p>\n

    Prolonged pandemic and relatively low vaccination rate had left emerging countries’ economic growth to lag behind the growth of the developed market <\/span>(DM). We note that prior to the energy crunch the consensus expected DM <\/span>economic growth to reach 5.1% in 4Q21, higher than emerging market (EM) <\/span>growth of 4.4% for 4Q21. However, the global energy crunch had limited the <\/span>recovery pace of DM, allowing EM to catching up with the DM growth, as <\/span>EM’s vaccination rate improved. For Indonesia, as a commodity producer, <\/span>higher energy prices provide a net-positive impact on the economy. This, <\/span>coupled with stronger IDR (supported by higher commodity exports), <\/span>Indonesia’s swift vaccination rate (100mn first doses and 58mn second <\/span>doses as of 10’Oct), and higher purchasing power (mainly in the rural area) <\/span>have made Indonesia more attractive for foreign investors. We note that <\/span>foreign investors recorded a total net-buy of Rp20.7tn to the JCI since <\/span>September, with a net-buy of Rp10.3tn recorded last week.<\/span><\/p>\n

    \u00a0<\/span><\/p>\n

    Old economy supported JCI positive performance<\/b><\/p>\n

    JCI up by 4.1% to 6,482 last week with consumer non-cyclical (+6.58%) and energy (+4.87%) sectors lead the positive performance. Last week, foreign <\/span>investors recorded a net buy of Rp10.3tn in the regular market, significantly <\/span>higher than the Rp4.4tn inflow recorded the week before. Foreign investors <\/span>were collecting BBRI (Rp2.84tn), BBCA (Rp1.80tn), and BMRI (Rp1.22tn). <\/span>Helped by increased appetite from the foreign investors, old economy stocks <\/span>outperformed new economy stocks on the JCI. <\/span><\/p>\n

    Indonesia’s 10Y government bond yield decreased by 0.3bps last week, allowing the spread to US 10Y Treasury yield to narrow to 4.62%. <\/span>Indonesia’s government bond yield performance remained one of the best in <\/span>the global market. With stronger commodity prices, we believe Rupiah will <\/span>be more stable, and negative external factors would have a less – compared <\/span>to the peers – impact on Indonesia’s bond market.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>

    <\/div><\/div><\/div><\/div><\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":1090,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2796","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-update"],"acf":[],"yoast_head":"\nSTAR Insight, Market Update 11 Oktober 2021 - Star Asset Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/star-am.com\/en\/2021\/10\/18\/star-insight-market-update-11-oktober-2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"STAR Insight, Market Update 11 Oktober 2021 - Star Asset Management\" \/>\n<meta property=\"og:url\" content=\"https:\/\/star-am.com\/en\/2021\/10\/18\/star-insight-market-update-11-oktober-2021\/\" \/>\n<meta property=\"og:site_name\" content=\"Star Asset Management\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-18T03:32:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-21T10:27:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/star-am.com\/wp-content\/uploads\/2023\/08\/Rectangle-3.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1440\" \/>\n\t<meta property=\"og:image:height\" content=\"770\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"IT Admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"IT Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/star-am.com\/id\/2021\/10\/18\/star-insight-market-update-11-oktober-2021\/\",\"url\":\"https:\/\/star-am.com\/id\/2021\/10\/18\/star-insight-market-update-11-oktober-2021\/\",\"name\":\"STAR Insight, Market Update 11 Oktober 2021 - 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