Market Performance:

• Major Indices: a strong week for global stocks after the US signaled lower than expected tariffs. S&P 500 index rebounded by 1.19% WoW and Nasdaq rebounded 0.99% WoW.
• Domestic Indices: Following stronger IDR and rate cut, JCI increased 0.47 % WoW and LQ45 also jumped 0.32% WoW. JCI has seen USD 371mn of foreign inflow in May 2025

 

Key drivers of the week:

• Macroeconomic Data:

1.Japan’s annual inflation rate held steady in April at 3.6% (prev: 3.6%, cons: 3.5%)

2.Indonesian Deposit Insurance Corporation (LPS) cut lending rate to 4% (prev: 4.25%)

3.Bank Indonesia and PBoC renewed their MoU for local currency adoption in bilateral trade, including usage of CNY and IDR in trading settlements

4.Indonesia MoF appointed two new heads for customs and taxation. Retired Army Lt. Gen. Djaka Budhi Utama as director of customs and excise (Bea Cukai). He has a track record of being harsh on illegal cigarettes. And Bimo Wijayanto as director general of taxation

 

• Geopolitical Events:

1.A US trade court ruled Donald Trump lacks authority to impose a tariff. Another US federal court rejecred the ruling. The tariffs are still in effect.

2.Donald Trump announced a 50% tariff for goods from The EU. However, The president quickly delayed his earlier ruling.

3.Tension in Ukraine rises as Germany gave Ukraine permission to conduct long range strikes

4.OPEC+ producers announced a massive supply hike of 440kbpd by July 2025. Oil slumped 3.1% WoW on this news

5.Elon Musk decided to leave DOGE after disagreement with Trump’s policies

6.French’s Emmanuel Macron kicked off Asian tour to strengthen economic and defense ties with Asian Countries

7.The Association of South-East Asian Nations (ASEAN) and the Gulf Co-operation Council held a joint summit in Kuala Lumpur, Malaysia’s capital. The meeting was called to develop economic ties between the regions.

 

• Sector/Corporate Highlights:

1.TLKM Approved final dividend IDR 21.1tn dividend, making up 89% payout ratio and 7.5% dividend yield. TLKM also announced a new Board of Director, with a change in the CEO to an EXCL veteran. The overall board is filled with professionals

2.PGAS Approved final dividend of  USD 272mn, making up 80% dividend payout and 10% dividend yield

3.SILO posted below consensus 1Q25 result of 246bn (-8% q/q) due to margin compression.

 

Market Sentiment:

• VIX: increased to 18.6 (prev: 17).
• UST yield went through a volatile week but ended stronger at 4.4%,
• IndoGB flat at 6.8%.
• DXY: Rebounded to 100 due to tariff uncertainty but returned flat WoW to 99.
• Rupiah strengthened to Rp 16,290/USD.

 

Looking Ahead:

• Economic data and event to watch:

1.Country-by-country trade deals with the US until the end of the 90 day tariff pause.

2.SRBI Jumbo maturity

 

Summary & recommendation:

The month of May 2025 was one of the best month ever and different than ‘sell in May’ phrase. Now we are approaching the last month of tariff pause. We still think positive outcome will be achieved through trade deals. Keep investing in equity is still one of the best time now.

 

Product recommendation:

RD MICB, RD Index FTSE ESG, RD MGSED, RD MMUSD, RD IDAMAN.

 

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PRODUCT	3M PERFORMANCE	YTD PERFORMANCE
JCI	+14,4%	+1,4%
LQ45	+15,8%	-1,4%
EQUITY
MITRA A	+15,5%	-1,0%
MICB A	+15,9%	+0,1%
ASEAN5	+13,6%	-2,9%
MGSED	+0,7%	+0,0%
INDEX
FTSE ESG A	+18,4%	+2,5%
ETF
XMLF	+18,9%	+1,3%
BALANCED
MISB	+3,60%	+2,01%
MIA	+9,35%	-0,05%
FIXED INCOME
MIDU A	+1,90%	+3,66%
MIDO2	+1,49%	+3,00%
IDAMAN	-0,68%	+1,61%
MONEY MARKET
MIPU A	+1,08%	+1,82%
MMUSD	+0,77%	+1,27%

*The data above is as of May 28th, 2025

 

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For More Information

Contact Mandiri Investasi – (021) 526 3505
WhatsApp Mandiri Investasi – 0816 86 0003
Email Mandiri Investasi – [email protected]
Mandiri Investasi – www.mandiri-investasi.co.id

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DISCLAIMER‌
‌‌

The information and opinions expressed in this article are for general informational purposes only and are not intended as specific advice or recommendations for any individual, security, or investment product. The content is meant to provide education about the financial industry. Opinions and views presented may change without prior notice. All performance data and investment returns mentioned in this article should not be used as a guarantee or basis for decisions to buy or sell any securities. The data reflects historical performance and does not guarantee future results. Investing in mutual funds carries risks. Investors are advised to carefully read and understand the prospectus before making any investment decisions.

 

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