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Weekly Insight

Year-End

23 December 2024
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Year-End

Global Markets

Major U.S. stock indexes experienced their steepest decline since mid-November following the Federal Reserve's indication of a more cautious stance on interest rate cuts in the coming year. This announcement unsettled markets, with the S&P 500 dropping 1.99% over the week. The Treasury market also saw a sell-off for the second straight week, pushing the 10-year government bond yield up to 4.53%.

The Federal Reserve's move sent shockwaves through markets worldwide, impacting Asia significantly. Major indexes across the region registered weekly losses, including a 0.70% drop for China's SSE Composite, a 1.25% decline for Hong Kong's Hang Seng Index, a 1.95% fall for Japan's Nikkei 225, a 3.62% plunge for South Korea's KOSPI, and a 2.37% decrease for Singapore's Straits Times Index.


Indonesian Markets

Bank Indonesia maintained its interest rate at 6%, prioritizing stabilization of the Rupiah against the U.S. dollar. However, this measure was insufficient to counter the strengthening dollar following the Federal Reserve's announcement. The Rupiah weakened to 16,270 against the U.S. dollar. The Jakarta Composite Index (JCI) subsequently fell sharply by 4.65%, led by a 5.62% decline in the LQ45 index. Yields on 10-year government bonds remained steady at just above 7%.


Weekly Highlight on Economic Indicators


Our Take:

Our equity fund, balanced fund, and fixed income fund recorded losses in this market situation. Valbury Prime Dynamic Equity decreased by 5.28% (BM: -4.36%), Valbury Investasi Berimbang decreased by 5.35% (BM: -2.50%), Valbury Stable Growth Fund decreased by 0.12% (BM: -0.16%). Meanwhile, Valbury Money Market I rose by 0.10% (BM: 0.07%).

We anticipate a more stable market this week due to reduced trading activity during the year-end period and few major economic data releases scheduled.

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.