Monthly Market Summary July 2024

In July 2024, general inflation decreased to 2.13% year on year, while core inflation rose to 1.95% year on year. The Indonesian PMI manufacturing index decreased from 50.7 to 49.3, which was caused by weak demand and exports. The purchasing power of Indonesian consumers is increasingly weakening, especially among middle class consumers, as a result of the depreciation of the Rupiah as well as rising wages and government spending which is lower than inflation.

IndoGB moved up with the 10-year bond yield falling by 14 bps to 6.9%. The price of GIDU 10Yr falling by 15 bps to 5.06%.  This happened after the probability of the Fed starting to reduce interest rates increased in September 2024.

The JCI and MSCI Indonesia indices strengthened by 2.7% and 3.0% respectively, led by the Industrial, Transportation and Property sectors. On the other hand, financial performance that was lower than expectations triggered a sell-off in several big cap stocks. At the beginning of the second half of 2024, the ASEAN stock market will experience an increase led by Malaysia, Thailand and the Philippines.

See more in the Monthly Market Summary for July 2024 from Principal Indonesia.