Update COVID-19 in Indonesia: 24,538 confirmed infections, 1,496 deaths (28 May 2020)
29 May 2020 (closed)
USD/IDR (14,502) -231.01 -1.57%
EUR/IDR (16,128) -204.62 -1.25%
Jakarta Composite Index (4,753.61) +37.43 +0.79%
Despite China’s positive economic growth of 7.5 percent in the second quarter of 2014, most Asian stock indices were down. Only Hong Kong's Hang Seng Index (HSI) managed to show a slight gain as large cap stocks were sought after. The HSI impacted positively on the benchmark stock index of Indonesia (known as the Jakarta Composite Index or IHSG) on Wednesday (16/07) which climbed 0.85 percent to 5,113.93 points on Wednesday (16/07). Foreign investors recorded net buying.
Investors are also glad to see increased speculation about market favourite Joko Widodo becoming the next Indonesian president. Several websites, based on information of the General Elections Commission (KPU), mentioned that Widodo leads the race by roughly 5 percentage points (after 96 percent of total votes have been counted).
However, the current position of the IHSG (not far from its all-time record high) is also vulnerable to profit taking, especially if joined by rupiah exchange rate depreciation.
The Indonesian rupiah, based on the central bank's mid-rate, continued to depreciate due to the appreciating US dollar after the Federal Reserve hinted at a sooner-than-expected interest rate hike, provided that the US labour market continues its improving trend. Meanwhile, market participants are still waiting for the official result of the Indonesian presidential election.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.82 percent to IDR 11,805 per US dollar on Wednesday (16/07).