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Jakarta, CNBC Indonesia – Operations in the Indonesian financial market in 2020 ended last Wednesday (12/31/2020). The composite stock price index (IHSG) ended at the level of 5,979.073, minus 0.95%, and throughout 2020 it registered a fall of 5.09%.
However, if the trade continues today, Thursday (12/31/2020), JCI has a chance to go green and return above the 6,000 level.
This is indicated by the movement of the Asian stock exchanges, whose trading is still active. China’s Shanghai Composite Index soared 0.83%, then Hong Kong’s Hang Seng rose 0.31%.
The positive sentiment came from the West. The House of Commons, one of the two houses of the British Parliament, has approved the draft of the post-Brexit agreements reached between the Government of the United Kingdom and the European Union (EU).
Brexit or Britain’s exit from the European Union will officially occur on January 1, 2021, after going through a transition period throughout this year.
Britain and the EU announced last week that they had reached a “zero-quota-zero-tariff” agreement, meaning there would be no high import tariffs or restrictions on the quantity of products both sides sell.
Then with regard to the fishing agreement, EU and UK fishers can still fish in both waters for the next 5.5 years. After that, each year there will be negotiations on fishing quota issues.
The draft will now be voted on in the House of the Lord, and it is also expected to be approved, so that hard Brexit will not happen, Britain is “on good terms” with the European Union.
Hard Brexit is something that market players fear, because it could lead the UK economy into a sharp decline, as well as drag the economies of other European countries.
The economic downturn in Europe certainly risks spreading to other countries, as a result the UK-EU trade deal is a relief for many parties and of course has a positive impact on financial markets.
Other than that, good news came from China today too. China’s manufacturing activity can still maintain its expansion this month. Chinese government data shows that the Purchasing Managers Index (PMI) in December rose to 51.9, down from 52.1 in the previous month.
PMI uses the number 50 as a threshold, below which means contraction, while above it is expansion.
Although China’s manufacturing PMI has declined, it is still expanding, thus continuing the recovery of the world’s second-largest economy.
These two factors can generate positive sentiment in the financial market and lead JCI into the green zone if you don’t have a vacation.
CNBC INDONESIA INVESTIGATION TEAM
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