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 surged further on Wednesday (28/12). The benchmark Jakarta Composite Index (IHSG) was up 1.75 percent to 5,192.19 points by 11:00 am local Jakarta time on Wednesday, extending the impressive 1.50 percent jump one day earlier that effectively ended a nine-day losing streak for Indonesian stocks. This positive performance is, partly, believed to be the result of "window dressing" ahead of the year-end. Meanwhile, other Asian markets are rather mixed today.
Window dressing refers to a strategy that is often used by fund and portfolio managers to improve the appearance of a fund's performance before presenting it to clients. The fund manager sells those stocks that have weakened in value and purchases those stocks that surged in value. This strategy is often applied before the end of a quarter.
It is also possible that after the nine-day losing streak investors are bargain-hunting on Tuesday and Wednesday. For example, shares of Astra International and Unilever Indonesia. Moreover, the year 2017 is expected to be a good one for Indonesian stocks as domestic economic growth is expected to accelerate amid improving purchasing power, higher commodity prices and government-led investment. Various analysts believe that Indonesia will outperform other emerging markets.
Overnight, Wall Street rose amid thin trade with the Nasdaq touching a new record supported by rising technology shares (although the Dow Jones Industrial Average, again, failed to touch the psychological boundary of 20,000 points). Meanwhile, higher crude oil prices add positive sentiments to the trading day in Asia. Oil is trading at the highest level so far this year.
Meanwhile, the Indonesian rupiah is slightly depreciating against the US dollar. By 11:00 am local Jakarta time on Wednesday (28/12) the rupiah weakened 0.10 percent to IDR 13,459 per US dollar.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.08 percent at IDR 13,447 per US dollar on Wednesday (28/12).
Indonesian Rupiah versus US Dollar (JISDOR):| Source: Bank Indonesia