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Weekly Insight

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17 December 2024
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Top Priority

Global Markets

The S&P 500 dipped by 0.64% last week, triggered by a mix of economic data that included accelerating wholesale inflation and higher-thanexpected jobless claims. This data prompted swap traders to reduce their bets on Federal Reserve easing. Consequently, the dollar index strengthened by 0.90%, reaching 106.68, and the 10-year U.S. government bond yield saw a significant increase to 4.40%, marking its worst week in over two months.

Compared to U.S. markets, many Asian stock markets generally had a positive week. South Korea's stock index rebounded following a recent political event that had caused instability. In contrast, China's SSE fell 0.36% despite a key economic meeting where officials pledged to boost consumption but offered no specific details on fiscal stimulus. Meanwhile, the Hong Kong HSI, Japan's Nikkei 225, and Singapore STI rose by 0.53%, 0.97%, and 0.37%, respectively.

This week, the U.S. Federal Reserve, The Bank of Japan, along with central banks in the Nordic countries and the UK will announce their monetary policies. Bank Indonesia will also have the announcement before the US.


Indonesian Markets

Indonesia's JCI fell 0.79% following the release of lower-than-expected retail sales figures of 1.5%, significantly below the projected 4.5%. Concurrently, yields on 10-year government bonds rose to 7.06% from 6.92%, once again exceeding the 7% threshold.


Weekly Highlight on Economic Indicators


Our Take:

Our equity and balanced funds delivered positive performance despite the market downturn. Valbury Prime Dynamic Equity increased by 0.33% (BM: -0.43%), Valbury Investasi Berimbang increased by 0.35% (BM: - 0.06%). Valbury Money Market I rose by 0.10% (BM: 0.08%). Meanwhile, Valbury Stable Growth Fund decreased by 0.21% (BM: -0.12%). With Rupiah stability as a top priority, we anticipate Bank Indonesia maintaining its interest rate at 6%, even with the expectation of a 25 bps rate cut by the Federal Reserve to 4.5%.

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.