We published an on the ground work on ASII (Buy, TP 7200) dissecting discounts, which is lower YoY. BI maintain benchmark rate at 7.5% as expected. Judging by impact of Fed rate hike on Rupiah so far (which remains stable at Rp14k), there is higher likelihood of a BI rate cut sometime next year, which would be positive for banks with less liquidity: BBTN, BTPN.
Big sectoral news: Ministry of transportation declared that all online-based transport is illegal and has asked the police to take action on the likes of Gojek, Grab Bike, Uber.
Although we doubt the police would actually restrict motorcycle taxis, the declaration by Ministry of transport is likely to boost TAXI and BIRD share prices up today (despite TAXI already up by 35% yesterday). KAEF and INAF: merger talks re-ignited.
US stocks down by >1% yesterday post rally from Fed Rate hike. Meanwhile, European equity markets posted 1-3% gains yesterday. Asian stocks rose after rate move. It seems that Fed’s decision has removed overhang in financial markets.