Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,616) +104.00 +0.72%
EUR/IDR (16,676) +221.69 +1.35%
Jakarta Composite Index (5,052.79) -23.38 -0.46%
There is no stop to the benchmark Jakarta Composite Index in the last week of 2017. Amid mixed Asian stock markets (and thin trading volumes), Indonesian stocks are persistently touching new record highs. By 11:25 am local Jakarta time on Friday, the last trading day of the year, the Jakarta Composite Index had climbed 0.77 percent to 6,362.69 points on Friday (29/12).
What is causing this positive momentum in Indonesia ahead of the year-end? Enthusiasm partly stems from the ongoing "winning streak". Since Wednesday 20 December 2017 Indonesian stocks have only been moving in one direction: upward, and touching one record after another. Rather than engaging in profit taking, investors (specifically domestic investors) now seem eager to stay on board.
Indonesian stocks also get some support from other Asian stock markets and Wall Street. Overall, 2017 has been a great year for the big stock markets across the globe on the back of a recovery in global economic growth and commodity prices.
Apart from rising commodity prices (most notably crude oil prices touching fresh two-year highs overnight), investors are also optimistic about the strengthening economic fundamentals of the Indonesian economy, good work of the central government (especially concerning infrastructure development) and the stable rupiah exchange rate. This is all reflected by the recent Fitch Ratings' sovereign credit rating upgrade from BBB- to BBB (stable outlook). This all causes great expectations for 2018 (and beyond).
Meanwhile, today, fishery products processing firm (especially crab products) Prima Cakrawala Abadi became the 37th company to be added to the Indonesia Stock Exchange in 2017 after successfully conducting its initial public offering (IPO). The company's shares immediately surged 69.33 percent, hence triggering the auto rejection system (when a company's shares rise too steeply, trading of that stock is temporarily halted).
Indonesian President Joko Widodo is scheduled to hit the closing bell this afternoon (16:00 pm local Jakarta time) at the Indonesia Stock Exchange building in Jakarta. Widodo will be joined by several ministers: Finance Minister Sri Mulyani Indrawati, Coordinating Minister for Economic Affairs Darmin Nasution, and Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan. Widodo will also open the first trading session of 2018 on Tuesday 2 January 2018. On Monday markets will be closed in Indonesia.
Meanwhile, the US dollar is finishing 2017 the same way it has spent much of the year: under pressure. Against the Indonesian rupiah, however, there are no big changes during the last trading week. On Friday (29/12) the Indonesian rupiah had appreciated 0.04 percent to IDR 13,552 per US dollar (Bloomberg Dollar Index).