🦅 Trump Opens Negotiations with China, Rupiah Strengthens to 16,173
Photo by: Stockbit Snips
Daily Market Performance 🚀
IHSG: 7,166 (-0.92%)
Coal: 116.9 (-4.06%)
Oil (Brent): 77.7 (+0.21%)
Gold: 2,781 (+0.57%)
CPO: 4,195 (+0.12%)
Nickel: 15,668 (-0.32%)
Confused by these numbers? Check this out!
---
👋 Stockbitor!
The Indonesian rupiah strengthened by +0.66% against the US dollar, reaching 16,173 on Friday (Jan 24), marking a 5-day rally with a +1.17% WoW appreciation. Other emerging market currencies also gained against the US dollar over the past week, including the Malaysian ringgit (+3.05% WoW), Thai baht (+2.34% WoW), and Philippine peso (+0.48% WoW).
This rupiah appreciation was driven by easing trade war risks between the US and China. On Thursday (Jan 23), US President Donald Trump stated that he could strike a fair trade deal with China. Trump revealed that he had a positive and friendly conversation with Chinese President Xi Jinping last week, shortly before his official inauguration as US President on January 20, 2025.
Trump expressed a preference for avoiding import tariffs on China but emphasized that tariffs are a powerful tool for the US to assert dominance over China.
This statement came just days after Trump announced plans to impose a 10% import tariff on China starting February 1, 2025, citing accusations that China was supplying narcotics to the US through Canada and Mexico. Upon inauguration, Trump imposed a 25% import tariff on Canada and Mexico for the same reason. The 10% tariff threat for China is milder compared to Trump’s campaign pledge of up to 60%.
Krung Thai Bank Market Strategist Poon Panichpibool told Reuters that Asian currencies are likely to strengthen, and US 10-year government bond yields may remain stable or decline, as long as the market believes Trump’s administration will delay or soften tariff increases.
---
Key Takeaway
Investors should closely monitor developments in US-China relations, as these could impact US inflation and interest rate prospects. As such, markets are expected to remain volatile until more concrete developments emerge.
Conservative investors might consider short-term government bonds like PBS003, which offers a 6.61% annual yield with a ~2-year tenure. Meanwhile, those with higher risk appetite could explore big bank stocks like $BMRI and $BBCA.
---
🛒 PTRO CEO Purchases 550,000 Shares
$PTRO: Petrosea CEO Michael acquired 550,000 PTRO shares at an average price of IDR 3,700 per share on January 20, 2025. The total transaction value reached ~IDR 2 billion, increasing Michael's ownership from 0.0139% to 0.0193%.
$HGII: Hero Global Investment CEO Robin Sunyoto revealed plans to acquire mini-hydro power plants (PLTM) with existing power purchase agreements with PLN but not yet commercially operational due to funding and technology constraints. HGII aims to acquire plants under 10 MW as part of its goal to add 100 MW of capacity by 2031, alongside organic expansion through hydro plants of 25 MW and mini-hydro plants of 10 MW, targeted for operation by 2028. HGII currently operates 2 mini-hydro plants with a total capacity of 19 MW through its subsidiary.
$SMRA: Summarecon Agung’s Director Lydia Tjio targets IDR 5 trillion in marketing sales for 2025, unchanged from the 2024 target but +14.4% higher than 2024’s realization of IDR 4.37 trillion. SMRA allocated IDR 2 trillion in capex for 2025 (vs. IDR 750 billion in 2024) for land acquisition and mall and hotel development.
$CLEO: Sariguna Primatirta CEO Melisa Patricia allocated IDR 600 billion in capex for 2025 (vs. IDR 450 billion in 2024) to boost production and distribution capacity to support aggressive future growth. CLEO plans to open 3 new factories in Pekanbaru, Pontianak, and Palu in 2025, bringing its total number of factories to 35. CLEO targets double-digit sales growth for 2025.
$PWON: Pakuwon Jati recorded IDR 427.2 billion in marketing sales for 4Q24 (+20% QoQ, +26% YoY), bringing 2024 total sales to IDR 1.55 trillion (+16% YoY), surpassing its 2024 target (104%) of IDR 1.5 trillion. The condominium segment contributed 50% of 2024 sales, followed by residential (46%) and office (4%). Marketing sales with VAT incentives accounted for 59% of 2024 sales.
