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Weekly Insight

Market Sentiment Shift

01 December 2025
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Market Sentiment Shift

Global Markets

Market sentiment in U.S. equities has turned more positive compared to the previous week, when concerns over high valuations—particularly in the technology sector—had weighed on performance. The shift to a more constructive sentiment was supported by growing optimism that the Federal Funds Rate could be cut at the upcoming FOMC meeting, reinforced by dovish remarks from several Federal Reserve officials and weakening U.S. economic data. Fed officials Mary Daly, Christopher Waller, and John Williams have all expressed support for a potential rate cut in December, citing a softening labor market.


Indonesian Markets

Domestically, equity market recorded positive performance, with the IDX80 index rising +0.81% last week and the JCI gaining +1.12%. Foreign investors booked a net purchase of IDR 991 billion in the equity market. Meanwhile, the BINDO bond index declined –0.36%, as the yield on 10-year government bonds increased from 6.18% to 6.31%. The rise in SRBI yields became a contributing factor to the pressure on the SBN market.


Weekly Highlight on Economic Indicators


Our Take:

Given the increasing likelihood of a Fed rate cut and improving dovish sentiment, our equity portfolio is currently in a defensive stance as positive sentiment wanes. Meanwhile, we shift toward our duration (fixed income portfolio) as the 10-year SBN yield has climbed 13bps within a week, driven by higher SRBI yields and increased auction frequency from Bank Indonesia, which has tightened liquidity.

The recommendation for investment to our investors (in order):
Equity Fund > Fixed Income Fund > Balanced Fund > Money Market Fund.


Author : KBVAM Investment Team

Source: Bloomberg, Infovesta, Trading Economics

DISCLAIMER :
INVESTMENT THROUGH MUTUAL FUNDS CONTAINS RISKS. PROSPECTIVE INVESTORS MUST READ AND UNDERSTAND THE PROSPECTUS BEFORE DECIDING TO INVEST THROUGH MUTUAL FUNDS. PAST PERFORMANCE DOES NOT REFLECT FUTURE PERFORMANCE.

This document was prepared based on information from reliable sources by PT KB Valbury Asset Management. PT KB Valbury Asset Management does not guarantee the accuracy, adequacy or completeness of the information and materials provided. PT KB Valbury Asset Management Indonesia is not responsible for any legal and financial consequences arising, whether against or suffered by any person or party and in any way deemed to be a result of actions taken on the basis of all or part of this document.