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%
Various negative sentiments made investors decide to engage in profit taking today (23/05). As Indonesia's main stock index (IHSG) had already reached the overbought area, it is highly susceptible of profit taking in case some negative news is released. But this time there were quite a lot of matters that made a negative impact: weak American indices on Wednesday (22/05) responding to the FOMC meeting, a spike in Japan's government bond yields, and Chinese manufacturing data that seems to indicate a contraction.
Indonesia's IHSG ended today's trading day at the level of 5,121.40, an 1.66 percent fall.
The IDR rupiah fell against the US dollar after Ben Bernanke announced in the FOMC meeting that there is room for a gradual reduction in the stimulus program although it will be maintained for now. Moreover, the strengthening of the Japanese yen after the country's 10-year government bond yield rose above one percent, was able to offset the rate of appreciation of the US dollar and limited the rupiah's fall.| Source: Bank Indonesia
Asian stock indices were all down after the FOMC meeting, the rise of the Yen, and the preliminary release of data that indicate a weakening of China's manufacturing. Basic industries and consumer stocks led the fall, but technology and raw food materials. Investors took their opportunity for profit taking as most Asian stock indices had experienced a rally recently.