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Weekly Insight

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10 December 2024
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Global Markets

The US stock market surged, with the S&P 500 reaching a new all-time high, after the release of US jobs data fueled speculation of a potential Federal Reserve rate cut in December. US hiring picked up and the unemployment rate edged higher, pointing to a moderating labor market rather than one that’s significantly deteriorating. As a result, swap traders assigned an approximately 80% probability to a quarter-point interest rate reduction at the Fed's December meeting. Shorter-term Treasuries, which are more sensitive to near-term policy changes, outperformed longer-term bonds.


Asian stock markets are generally experiencing a positive week. However, South Korea's market is facing challenges due to recent political instability. The President's declaration of a military emergency and subsequent impeachment proceedings have created uncertainty and impacted investor sentiment. China SSE, Hong Kong HIS, Japan Nikkei 225 increased by 2.33%, 2.28%, 2.25% respectively. South Korea KOSPI by - 1.13%.


Indonesian Markets

Indonesia's stock market rebounded strongly, with the Jakarta Composite Index (JCI) surging 3.77%. This positive performance coincided with a slight improvement in the S&P Global Manufacturing PMI, which rose from 49.2 to 49.6. Additionally, the inflation rate remained stable at 1.55%. On the other hand, ields on 10-year government bonds increased to 6.92% from 6.87%.


Weekly Highlight on Economic Indicators


Our Take:

Our equity fund and balanced fund participated in the market’s rebound. Valbury Prime Dynamic Equity increased by 1.07% (BM: 1.40%), Valbury Investasi Berimbang increased by 0.99% (BM: 0.64%). Valbury Money Market I rose by 0.10% (BM: 0.09%). Meanwhile, Valbury Stable Growth Fund decreased by 0.18% (BM: -0.07%).

With several data points released that have increased the likelihood of a Fed rate cut this month, we anticipate that Bank Indonesia may have more room to stabilize the rupiah.

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


Author : KBVAM Investment Team


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.