JAKARTA (TheInsiderStories) – Good morning. The closing deal of PT Freeport Indonesia (PTFI) shares sale has give positive impact to the financial market. From global sides, United States (U.S) announced inflation reached 2.9 percent in June or rose 0.1 percent compared to previous month.
As we know, PT Indonesia Asahan Aluminium (Inalum) will become a 51.38 percent shareholder of PTFI, the world’s second-largest copper mine, by buying shares from U.S’ miner Freeport-Mcmoran Gold & Copper Inc. (NYSE: FCX) and Australia’ miner Rio Tinto Limited (ASX: RIO) for US$3.85 billion.
FCX, RIO and Inalum’s subsidiary shares price such as PT Timah Tbk (IDX: TINS), PT Bukit Asam Tbk (IDX: PTBA), PT Aneka Tambang Tbk (IDX: ANTM) has pushed higher followed the closing deals. Today, Rio Tinto’s U.S.-listed shares rose 1.2 percent in premarket trade and Freeport’s stock rallied 1.8 percent.
According to analyst from Kresna Sekuritas Robertus Yanuar Hardy for the three units of Inalum businesses, the acquisition of PTFI shares has limited impact caused PTBA, ANTM, and TINS are different entities.
He said, the direct impact, especially financially after the acquisition of Freeport, was minimal. But its different if in the future, ANTM will be prioritized to work on smelters with Freeport and PTBA as a provider of energy, explains Hardy.
On the other side, U.S inflation rose below expectations in June, amid falling utility prices and a record decline in hotel costs. The U.S Labor Department showed the Consumer Price Index (CPI) rose 0.1 percent from a month earlier after a 0.2 percent rise in May, while core CPI excluding food and energy rose 0.2 percent.
Compared to the same month of the previous year, the CPI rose 2.9 percent, the most since 2012, while core CPI rose 2.3 percent, the biggest increase since January 2017. Both are in line with economists’ forecasts.
The rise in core CPI reflects an upward pressure on services and some goods, with employment growth and stable consumer spending and second-quarter economic growth projected to increase temporarily by up to 4 percent.
Last May, the Federal Reserves has indicated that a simple overshoot of inflation goals would not mean a more aggressive rate hike, as over the years, price increases have come below expectations.
The data has give little shocked to the financial market. Yesterday, Rupiah closed down 5 points or 0.03 percent at the level of Rp14,390 per U.S dollar from earlier on Wednesday (11/7), the rupiah ended dropped 0.13 percent or 18 points at Rp14,385.
The rupiah weakened as currency movements in Asia tended to be mixed yesterday afternoon, with South Korean won leading 0.51 percent decline, followed by Japanese yen lowered 0.36 percent. The Offshore yuan of China rose sharply by 0.55 percent, followed by the Indian rupee which rose 0.30 percent.
Meanwhile, the U.S dollar index movement that measures the strength of the U.S dollar exchange rate against a number of major currencies was observed to strengthen 0.06 percent or 0.055 points to 94.774 level. Earlier, the dollar index opened down 0.017 points or 0.02 percent at 94.702, after ended up 0.60 percent or 0.561 points at 94.719 level on Wednesday.
While, the Jakarta Composite Index (JCI) was still up 0.25 percent to 5,907 and its expected continued to show positive trends for four consecutive days.