The Rupiah exchange rate stabilized in July 2024, influenced by a decline in the DXY index. This situation was prompted by lower inflation and a softer job market in the U.S. economy. The Federal Reserve kept the benchmark rate unchanged in its July 2024 meeting, with plans to cut rates in September 2024. Alongside the weaker U.S. economic conditions, the Bank of Japan made a significant move by increasing its benchmark rate by 15 basis points to control rising inflation. This decision could help stabilize emerging market currencies, including the Rupiah. With stable currencies, risky assets in emerging markets, such as equity markets, are expected to perform well.

The equity market showed strong performance in July 2024, largely driven by improved earnings results for the second quarter. Notable results included banking stocks like BBCA, BBRI, and BMRI, which met consumer expectations. Consumer stocks such as ICBP, MYOR, and SIDO exceeded consensus expectations, while CMRY was in line. The industrial sector, represented by ASII and UNTR, surpassed expectations, and the telecommunications sector was in line with consensus forecasts. We believe the domestic stock market is gaining momentum in the second half of the year.