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%
Apparently the stormy and dark clouds above the Indonesia Stock Exchange (IDX) are still present. Most foreign investors continued to sell their Indonesian assets, resulting in another day of losses for the main stock index of Indonesia (IHSG). Not even clarity about the price hike of subsidized fuel could ease investors' minds (fuel prices were increased last Saturday after months of speculation). For the last two weeks negative sentiments have coloured the stock exchange and profit taking has been the result.
On Monday's trading day (24/06), the IHSG lost 1.90 percent and ended at the level of 4,429.46.
The IDR rupiah was slightly up today although it is still showing a weakening trend after the US dollar strengthened as the Federal Reserve announced to limit and stop the quantitative easing program if economic recovery of the USA continues. Moreover, Japan's yen and China's yuan weakened due to disappointing manufacturing data from China and a sharp increase in interbank interest rate in Shanghai which triggers a liquidity crisis in the banking sector. Indonesia's rupiah was supported by the government's decision to raise the price of subsidized fuel as it will relieve the government's budget deficit.| Source: Bank Indonesia
Most Asian stock indices continued their downward spiral, even though they have reached the oversold status. After Ben Bernanke's speech sparked negative market sentiments across the globe, now its the slowing economic growth of China (including the liquidity problem) that worries market players. The Goldman Sachs Group lowered its forecast for economic growth of China in 2013 from 7.8 percent to 7.4 percent.