Fluctuation

In May 2024, the Indonesian equity market witnessed substantial fluctuations, driven by a confluence of domestic economic developments, global market trends, and political factors. Inflation remained under control, although there were concerns about rising energy prices impacting overall cost levels. The Indonesian Rupiah maintained relative stability against major currencies despite divergent global monetary policies. The Federal Reserve maintained a cautious approach, balancing the need to curb inflation with the imperative to support economic growth. In contrast, the European Central Bank (ECB) faced pressure to implement stimulus measures to counteract sluggish economic performance. Meanwhile, central banks in emerging markets grappled with currency volatility and inflationary pressures, influencing their monetary policy decisions. The Central Bank of Indonesia adopted a balanced monetary policy stance, focusing on maintaining Rupiah stability while keeping inflationary pressures in check.

The Jakarta Composite Index (JCI) exhibited a mixed performance throughout May 2024. Early in the month, the market experienced gains propelled by positive earnings reports and strong economic data. However, mid-month volatility arose due to global market fluctuations and geopolitical tensions impacting investor sentiment. By the end of May, the JCI had rebounded, closing the month on a positive note, bolstered by strong corporate earnings and an optimistic economic outlook. The primary driver of market fluctuations was the banking sector, where investors recalibrated their assessments of growth and asset quality following the dynamic first quarter of 2024. Concurrently, consumer stocks demonstrated resilience, driven by stable financial performance in the first quarter, indicating buoyant domestic consumption. Additionally, certain coal and metal stocks experienced gains driven by some sentiments. Coal prices rallied due to increased energy demand driven by heatwaves in coal-dependent countries, while nickel prices surged owing to instability in a major nickel-producing country. Several large-cap stocks were valued as attractively as they had been during the COVID-19 pandemic, presenting lucrative opportunities for equity investors to acquire RD equity.