The Fed’s rate cut in September 2024 weakens the US Dollar, boosting stock indexes and bonds amid lower inflation.
US and BI interest rate decisions will impact the stock market, with domestic stocks expected to be positive towards the end of the year.
IHSG’s rise is positive, but equity investment opportunities remain as valuations are still appealing without the 7 major stocks.
August 2024 bond rally was triggered by The Fed’s statement, BI rate projections, and a preference for money market bonds.
IndoGb yield fell below 6.8%, driven by the decline in the 10-year US Treasury and a 5% Rupiah appreciation in August 2024.
Domestic equities stabilized, supported by US rate cuts and a stronger Rupiah, with a positive outlook for future growth ahead.
Global equities fluctuated in August 2024, but stabilized with optimism surrounding interest rate cuts by The Fed and Bank of Japan.
The JCI hit a record of 7700, and the Rupiah strengthened to Rp15,450/USD. The JCI valuation is low at 13.6x PE with limited downside risk.
Stocks and bonds rebounded in July 2024, driven by global rate cuts and economic stability. IHSG rose to 7200, IndoGb yields dropped below 7%.
Indonesia’s domestic economy continues to grow despite challenges, with increased imports and exports and a narrowing budget deficit.
