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Jakarta, CNBC Indonesia – The Indonesian financial market strengthened last week. The Jakarta Composite Index (IHSG), the rupee exchange rate, until bond prices point higher.
Over the past week, JCI strengthened by 0.98% point by point. However, daily last week, JCI finally fell for 2 days in a row towards the end of the week. On Thursday (10/15/2020), JCI weakened by more than 1% or 1.32%.
This is due to action profit taking which was unstoppable, because for 8 consecutive days, JCI experienced continuous strengthening.
Compared to other Asian stock exchanges, JCI is still in the green zone. However, JCI lost to the Hong Kong and Chinese indices, where each still strengthened above 1% last week.
During the same period, the exchange rate of the rupee against the US dollar (US) rose 0.03% on the spot market. However, unlike JCI, the rupee tends to fluctuate daily.
At the beginning of the week, the rupee weakened slightly by 0.03%, however, in the following days, the rupee began to strengthen but tended to stagnate. At the end of the week, the rupee weakened again, albeit thin by 0.07%.
While the performance (performance) 10-year public debt decreased 14.1 basis points (bps) on average. point by point last week.
Decrease performance indicates that the price of the bond is rising due to the great interest of market players. This can be seen in the foreign property in the Letter of National Valuation (SBN) during October 2020 that
From within the country, there were many sentiments last week, from the decision on the Bank of Indonesia (BI) benchmark interest rate, the trade balance, to the International Monetary Fund (IMF) forecast.
On October 13, Bank Indonesia (BI) announced that it would keep BI’s 7-day reverse repurchase rate at 4%. BI’s approach remains unchanged, that is, it focuses on exchange rate stability.
However, in his monetary policy presentation, BI Governor Perry Warjiyo delivered good news. The country’s central bank estimates that Indonesia’s current account deficit will turn into a surplus.
If BI’s forecast comes true, this will be the first time since the last quarter of 2011 that the current account has posted a surplus.
The IMF then released the latest global economic projections last week. In a report titled “A Long and Difficult Ascent,” the IMF revised its “forecast” for world economic growth and several countries.
The IMF now estimates that the world economy in 2020 will experience a contraction (negative growth) of 4.4%. It improved compared to the forecast published in April of -4.9%.
Unfortunately, however, the IMF has cut its forecast for Indonesia’s economic growth. In June, the IMF estimated that Indonesia’s economy would contract by 0.3% this year. In the October report, the forecast worsened to a contraction of 1.5%.
“Almost all developing countries are expected to record an economic contraction this year. Meanwhile, countries like India and Indonesia are struggling to control the pandemic,” the IMF report wrote.
From the global world, from abroad, the negative sentiment came from the US and the blue continent. In the US, negotiations on the continuation of the Covid-19 economic stimulus bill have stalled again and there will reportedly be no agreement in the near future before the US elections end.
There are still differences around the amount of stimulus proposed by US policy makers consisting of the government, namely Donald Trump as president, the Republican Party and the Democratic Party.
From the Blue Continent, the rebound in cases that occurred in Europe made some countries such as Great Britain, France or Poland face an emergency again and decide to harden their public mobility.
