Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,501) +55.01 +0.38%
EUR/IDR (16,343) -41.31 -0.25%
Jakarta Composite Index (5,052.79) -23.38 -0.46%
The upward revision of the IMF's outlook for global economic growth (raised to 3.7 percent) was able to boost several commodity prices. This then was a reason for investors to purchase mining stocks, which made a positive impact on the performance of Indonesia's benchmark stock index (known as the Jakarta Composite Index or IHSG) on Wednesday (22/01). Stocks in the consumer and trade sectors were also popular as speculation emerged that demand for consumer goods will rise due to the severe floods in several cities in Indonesia.
Lastly, the IHSG was also supported by rising Asian indices. Asian indices were up due to higher commodity prices and due to news that the Bank of Japan will continue to widen its monetary easing program. The yen subsequently depreciated and this made exporter stocks rise. Market participants are also still responding to China's central bank (PBoC) that increased liquidity in China's financial system.
Despite ongoing concern about possible profit taking, the benchmark index of Indonesia rose 0.56 percent to 4,477.49 points on Wednesday (22/01).