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%
Indonesian stocks tumbled at the first trading day of the week as investors are still concerned about the condition of the global economy. Declining stock indices on Wall Street at the end of last week had a negative impact on Asian stock indices, including Indonesia’s benchmark stock index (known as the Jakarta Composite Index, or abbreviated IHSG). The IHSG fell 1.01 percent to 4,913.05, its lowest level since 4 July 2014, on Monday (13/10). Foreign investors recorded net selling of IDR 595 billion (USD $49.6 million).
The closed meeting between president-elect Joko Widodo (Jokowi) and the newly-elected speakers of the House of Representatives (Setya Novanto), People’s Consultative Assembly (Zulkifli Hasan), and Regional Representative Council (Irman Gusman) did not seem to impact on the market. The four men met last Friday to discuss Jokowi’s inauguration (scheduled for 20 October 2014).
Although China’s exports and imports in September beat expectations (thus providing positive market sentiments it indicates that the world’s second-largest economy searches for sources of growth to meet its 7.5 percent annual growth target), it could not offset the weakening performance of most Asian stock indices.
One notable loser was Indonesian coal miner Adaro Energy, plunged 7.3 percent as falling oil prices weighed on energy related stocks across the region.
The Indonesian rupiah exchange rate appreciated slightly. Vice Chairman of the Federal Reserve Stanley Fischer said that the US central bank may maintain low interest rates as various outlooks for global economic growth have been revised down.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) appreciated 0. 04 percent to IDR 12,202 per US dollar on Monday (13/10).