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%
As I wrote before, profit taking in combination with mixed movements of global stock indices resulted in the limited movement of Indonesia's main stock index (IHSG) on Monday (22/07). The IHSG was corrected 0.96 percent to 4,678.98. All of the sectoral indices weakened, except for the plantation and mining sectors. As there were no positive news publications that would make investors buy assets, they decided to engage in profit taking after the IHSG had risen for five consecutive days.
Both trade volume and value of transactions fell, with foreigners being net sellers and domestic investors net buyers of Indonesian assets.
The Indonesian rupiah gained slightly as the Japanese yen and Australian dollar strengthened. The yen strengthened because prime minister Shinzo Abe's Liberal Democratic Party (LDP) and its coalition partner New Komeito secured a majority in the upper house of parliament after Sunday's election.| Source: Bank Indonesia
Asian Stock indices were mixed but with an upward trend after investors saw that the election result of Shinzo Abe provides room for the continuation of reformation and deregulation of Japan's economy. Indices in China also gained. This was due to the central bank's decision to end a floor on borrowing costs, which was previously set at 30 percent below the benchmark.