Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,446) -14.00 -0.10%
EUR/IDR (16,385) +81.74 +0.50%
Jakarta Composite Index (5,052.79) -23.38 -0.46%
Although we advise investors to remain careful as any negative sentiment will be used as a valid reason for profit taking, Indonesia's benchmark stock index (Jakarta Composite Index or IHSG) was up from the start of the trading day on Tuesday (11/03). The start of dividend payouts helped to offset concerns about possible interest rate hikes (in emerging markets) as well as the impact of weak indices on Wall Street and Europe on Monday (10/03). Asian stock indices, however, were positive on Tuesday, thus providing support for the IHSG.
On Tuesday (11/03), the IHSG climbed 0.58 percent to 4,704.21 points.
The decision of the Bank of Japan to maintain its low interest rate brought positive market sentiments in Asia as this shows Japan's determination to maintain its monetary easing policy. Other positive news came from India where the trade deficit declined and from China where the Governor of the central bank (Zhou Xiaochuan) said that that deposit rates will be liberalized for one to two years. Moreover, there is a possibility that China's interest rates will rise gradually.