Jakarta Comopiste Index closed as panic had gripped global banking stocks for the second time in a week, the wave of fear prompted by the collapse of California’s Silicon Valley Bank, has been followed by fresh jitters over the stability of major European Bank credit suisse.
Shares in the Swiss Lender, plunged more than 30% at one point to a record low, after its top shareholder the Saudi National Bank, ruled out providing it with fresh funding because of regulations that cap its stake. Stocks in many other banks also plunged as traders took fright.
Other sentiment was, many investors had been expecting the fed to announce a 50 basis point rate hike at the conclusion of its meeting, after FED Chairman Jerome Powell said that rates would likely go higher than expected.
But the aftermath of Silicon Valley Bank’s collapse, which saw the banking sector struggle and led investors to focus on safer assets like government bonds, caused uncertainty about the fed’s policy path.
Tomorrow index expected in the range of 6.585-6.700. While rupiah will be in the range of IDR 15.300-IDR 15.400.
