US stocks closed lower on Friday (5/19); Dow Jones -0.33%, S&P 500 -0.14%, and Nasdaq -0.24%. The market fell following the halt in US debt ceiling negotiations, with GOP negotiators walking out of the meeting, fueling doubts that an agreement can be reached soon. However, a comment from Fed Chair Jerome Powell that Fed rate may not need to rise as much as previously thought helped calm the market and prevent further losses. The UST 10Y yield rose +3.39% to 3.691%, while the USD index fell -0.37% to 103.98.

 

Commodity market gained some ground on Friday (5/19); WTI oil +0.13% to USD 74.4/bbl, Brent -0.71% to USD 7.56/bbl, coal +3.47% to USD 159.35/ton, nickel +2.7% to USD 21,498, CPO +2.5% to MYR 3,480, and gold 1.03% to USD 2,000/toz.

 

Asian market closed mixed on Friday (5/19): Kospi +0.89%, Nikkei +0.77%, Hang Seng -1.4%, and Shanghai  -0.42%. JCI rose +0.56% to 6,700.6, with foreign investors recording an overall net buy of IDR IDR 1.03 trillion; IDR 1.11 trillion net buy in the regular market and IDR 78.2 billion net sell in the negotiated market. The largest foreign inflow in the regular market was recorded by BBRI (IDR 505.8 billion), followed by BBCA (IDR 335.8 billion), and ASII (IDR 243.4 billion). The largest foreign outflow in the regular market was recorded by MDKA (IDR 61.7 billion), followed by TLKM (IDR 45.1 billion), and BBNI (IDR 40.7 billion). The top leading movers were BBRI, BBCA, and BMRI, while the top lagging movers were MDKA, ADRO, and UNTR.

 

Nikkei fell -0.28% this morning, while KOSPI rose +0.56%. We expect the JCI to move sideways today, given mixed sentiments from global and regional markets.