Update COVID-19 in Indonesia: 24,538 confirmed infections, 1,496 deaths (28 May 2020)
29 May 2020 (closed)
USD/IDR (14,769) +8.00 +0.05%
EUR/IDR (16,275) +95.18 +0.59%
Jakarta Composite Index (4,753.61) +37.43 +0.79%
The main stock index of Indonesia (IHSG) fell 0.24 percent to 4,418.87 on Tuesday (25/06) as foreign investors continued to sell parts of their Indonesian stock portfolios. In fact, after selling USD $68 million worth of stocks on Tuesday, foreign investors have now sold more stocks than they bought in 2013. From its record high of 5,214 on 20 May 2013, the IHSG has now fallen 15 percent. After the speech of Ben Bernanke one week ago (19/06), investors have been pulling out money from emerging markets, including Indonesia.
On Tuesday (25/06), stock indices in the United States were supported by strong macroeconomic figures and renewed optimism about policy measures of central banks. The Dow Jones index was up 0.7 percent and the S&P 500 index gained 1 percent. Investors seem to be somewhat recovered from the shock that followed after Bernanke announced that the Federal Reserve will tone down its quantitative easing program this year until a complete stop in 2014 (if the economy of the USA will continue its recovery).
House prices in the 20 largest cities in the USA increased by 12.1 percent, the highest jump in seven years. The number of new home sales were also up in May. Furthermore, US consumer confidence in June grew significantly compared to May (representing a much higher growth than originally expected). Also, US durable goods orders rose strongly.
Various central bankers gave statements that eased investors' minds. A central banker in China said that the People's Bank of China will keep its interbank interest rate within reasonable boundaries as market players still feared a credit crisis the day before. Also, governor of the Bank of England, Mervyn King, and a policy maker at the European Central Bank stressed on Tuesday that monetary policies will remain accommodative.