Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,512) +26.00 +0.18%
EUR/IDR (16,454) +50.48 +0.31%
Jakarta Composite Index (5,052.79) -23.38 -0.46%
Indonesia's benchmark stock index (known as the IHSG or Jakarta Composite Index) posted another small gain on Wednesday (16/04), thus extending its winning streak to four days. The index gained 0.06 percent to 4,873.01 points. Despite slowing GDP growth in China, a depreciating rupiah exchange rate (responding to slightly higher US chain store sales and expected higher US building permits as well as US manufacturing production) and foreign investors recording a net sell, the index stayed in the green zone.
Although China's gross domestic product (GDP) rose by 7.4 percent (year-on-year) only in the first quarter of 2014 - its lowest level in six quarters - thus not achieving its growth target of 7.5 percent, the market did not respond negatively as this GDP growth result was slightly better than most analysts' forecasts. In fact, slowing economic growth in China is expected to result in increased government stimulus in an attempt to give a boost to the economy. Therefore, China's stock indices remained in the green zone and impacted positively on other Asian indices.
Data about China's slowing economy was also offset by the country's March Industrial Production (8.8 percent yoy) and March Retail Sales (12.2 percent yoy).