Update COVID-19 in Indonesia: 59,394 confirmed infections, 2,987 deaths (2 July 2020)
2 July 2020 (closed)
USD/IDR (14,566) +50.00 +0.34%
EUR/IDR (16,379) +36.63 +0.22%
Jakarta Composite Index (4,966.78) +52.39 +1.07%
As I have mentioned before, Indonesia's benchmark stock index (better known as the Jakarta Composite Index or IHSG) runs the risk of declining amid a lack of domestic or external positive market sentiments. Despite the indices on Wall Street being up on the higher than expected markit services PMI as well as ISM-non manufacturing PMI, it was unable to uplift sentiments in Jakarta. Market participants seem to wait & see in the first week of May 2014, evidenced by the reduced trading volume and value of transactions.
There are various internal reasons for investors to prefer to wait and see first. These include concerns about further economic growth of Indonesia in 2014 (after it was announced on Monday that Indonesia's GDP growth result was a disappointing 5.21 percent year-on-year in Q1-2014) and increased speculation about coalitions and (vice-)presidential candidates for the July presidential election.
On Tuesday (06/05), the Jakarta Composite Index fell 0.17 percent to 4,834.47 points.
Several companies that posted Q1-2014 earnings reports that were above investors' expectations, such as Leighton Holdings Ltd and Genting Singapore Plc, caused a positive impact on Asian indices.