Bank Indonesia Put Interest Rates on Hold, JCI Remains under Pressure

Share Market Update 

Indonesian stocks finished lower despite the country’s central bank kept rates at record lows to support the country’s economic recovery from the pandemic, after growth disappointed in the third quarter due to a deadly Covid-19 wave in July.

Jakarta composite declined 39.335 points (-0.589%) to 6,636.469. LQ45 fell 0.79% to 945.939. There were 27.044 billion shares traded worth of Rp11.988 trillion, including transaction of Rp1.798 trillion in negotiation market. Foreign investors were net sellers of Rp446.75 billion in regular market. 237 shares rose while 265 declined and 160 unchanged.

BI left the benchmark 7-day reverse repurchase rate unchanged at 3.50%, where it has been since February as expected. It also kept deposit facility and lending facility at 2.75% and 4.25% respectively.

SSMS recorded an increase in sales by 34.68% to Rp3.68 trillion in September 2021 with net profit soared 285% to Rp1.02 trillion from Rp264.97 billion in previous year.

According to JISDOR released Thursday afternoon, Rupiah climbed 48 points (+0.20%) at 14,231 while spot rate added 15 points (+0.11%) to 14,225.

Stocks in Asia and Europe were mixed amid concerns that central bank will become more hawkish to curb inflations and as risks surrounding coronavirus reappeared.

Data released on Wednesday showed euro zone inflation at 4.1% year-on-year in October, more than double the European Central Bank’s target.

Meanwhile, U.K. consumer price index came in at 4.2% in the 12 months to October, its highest in almost a decade as energy and automotive costs soared. The data is expected to add pressure on the Bank of England to act on interest rates at its December meeting.

South Korea reports a record high 3,292 new cases as it moves into the first phase of its loosened “living with COVID-19” restrictions.

Oil prices extended declines amid growing concerns about oversupply and a recovery in demand. Brent fell 68 cents (-0.85%) at $79.60 per barrel and U.S WTI declined $1.04 (-1.33%) at $77.32 a barrel.

Share Market Update 

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