Hi,

November was a challenging month for markets across stocks and bonds overall. We saw heavy foreign outflows from the Indonesian capital markets that detracted Equity performance, while Fixed Income delivered positive returns through coupon accruals. Having said that, our Cash and Equity strategies outperformed their respective benchmarks.

Market Outlook

  • Bank Indonesia Prioritizes Rupiah Stability: Despite low inflation (1.55% in November), BI held its rate at 6.00%, focusing on Rupiah stability amid global uncertainties, with further cuts unlikely before the December Fed FOMC meeting.
  • Diverging US and Crypto Trends: US equities hit record highs, and Bitcoin surpassed $100,000 after Trump's victory, but rising rates may limit a crypto bull run, despite optimism over pro-growth policies.

Portfolio Positioning

We're focusing on Indonesian government bonds, as we anticipate declining interest rates. For equities, we're waiting for a more favorable market environment and will continue to invest in momentum stocks to mitigate foreign outflow risks.

Thank you.

Access the English version of the full report here.

Access the Indonesian version of the full report here.