Morning Chatter

KBVS MORNING CHATTER
Friday, 03 May 2024

Headline News :
•    ICBP - 1Q24 KTA AM, 1Q24 PATMI sharply declined
•    CTRA - Solid Profit Growth; In-line
•    BSDE - 1Q24 Earnings Turnaround, above expectation
•    ADRO - Solid Profit Generation; Above Expectation
•    SMRA - Highest quarterly earnings since 4Q14; Above Expectation
•    KLBF - Solid earnings growth yoy/qoq, in 1Q24
•    ACES - 1Q24' earnings grew 29.3% yoy
•    BIRD – Net profit declined 6.8% yoy in 2024
•    TPIA – Booked a net loss of USD30.11 mn in 1Q24
•    INTP – Performance prospects due to IKN and infrastructure projects
•    ADHI – Booked a 20.14% yoy earnings growth in 1Q24
        
Market Commentary :
US indices ended higher on Thursday (02/05); DJIA (+0.85%), S&P 500 (+0.91%) and IXIC (+1.51%), led by technology and consumer discretionary sector' gains and after the Fed indicated it was leaning toward a dovish stance as the Fed' chairman, Jerome Powell stated that it is unlikely to hike its FFR, instead it would stay higher for longer. Now, market could see around 60% chance the Fed will cut by at least 25bps in Sept'24, according to CME's FedWatch Tool. Meanwhile, US labour' data showed that US' initial jobless claim was better than expected at 208,000. Thus, USD index fell 0.35% to 105.34 and US 10-Y bond yield fell to 4.583%.

In Europe, STOXX600 ended lower (-0.20%), as the market came back from Labor day on Thursday and digested a slew of earnings after the Fed signalled a delay in US interest rate cuts. Meanwhile, a survey showed the ongoing downturn in EU' manufacturing activity deepened in April, pushing firms to reduce headcount again. Thus, EU could cut its rates ahead of the Fed. On commodity, Brent Oil slightly rose to USD83.67 /barrel, while US WTI fell to USD78.95 /barrel as market remained under pressure from weaker global demand, rising inventories in US and fading hopes for a quick cut in US interest rates, despite easing tension in the Middle East. On the other hand, OPEC+ is scheduled to meet on June 1st, 2024 and could likely to continue its voluntary output cut as much as 2.2 mn barrels per day beyond June'24.

Yesterday, indices in Asia ended mixed, and JCI ended lower (-1.61%), with IDR2.6tn net foreign outflow. Today, JCI could rebound and end higher on USD' weakening, a possibility for further delay on rate cut by the Fed to Nov'24, lower global oil prices amidst easing tensions in the Middle East.

Regards, 
KBVS Research Team

 

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