Indonesia Weekly Market Update
Indonesian stocks were under pressure on Thursday as global markets drifted ahead of the Jackson Hole symposium.
However, Indonesia has taken several measures to cope up with tapering plans and it is believed that the country has better resiliency in facing the impact of taper tantrum.
Jakarta composite fell 55.16 points (-0.902%) to 6,058.08 while LQ45 declined 0.93% to 850.205. There were 22.331 billion shares traded worth of Rp11.194 trillion, including transaction of Rp2.331 trillion in negotiation market. Foreign investors sold a net Rp73.13 billion in regular market. 187 shares rose while 333 declined and 135 unchanged.
According to Indonesia’s Coordinating Maritime Affairs and Investment Minister, Chinese and Indonesian companies are cooperating to build a Covid-19 vaccine factory to meet demand in Indonesia.
Meanwhile, Minister of Finance said that until the end of July 2021, state expenditures amounted to Rp1,368.4 trillion, or 49.8% of the 2021 State Revenue and Expenditure Budget target of Rp2,750 trillion.
On corporate news, WSKT had received the approval of credit restructuring from seven creditors worth Rp21.9 trillion. This value is equivalent to 75% of the total WSKT debts which reached Rp29 trillion.
An unconfirmed news reported that there will be cabinet reshuffle in September following the the presence of PAN in Jokowi coalition.
According to JISDOR released Wednesday afternoon, Rupiah retreated 15 points (-0.10%) to 14,423 while spot rate declined 20 points (-0.14%) at 14,415.
Asian and European stocks fell Thursday on caution about the regulatory outlook in China and Jackson Hole symposium, which may offer fresh insight on how the Fed intends to scale back bond purchases.
On the central bank news, South Korea’s central bank raised interest rates for the first time in nearly three years, making it the first major economy to do so in the pandemic era. The Bank of Korea raised its rate by 25 basis points to 0.75%.
The latest U.S. data showed orders placed with factories for business equipment unexpectedly stalled in July, marking a pause in a months-long buildup in capital investment.
In Europe, German consumer morale dropped off heading into September with GfK’s consumer sentiment index fell to -1.2 points from a revised -0.4 points in August. Meanwhile, French business morale was roughly stable in August, with the country’s composite business confidence index coming in at 110 versus 113 in July.
Gold prices were flat on Thursday as investors turned cautious ahead of U.S. Federal Reserve Chair Jerome Powell’s speech this week, which could provide cues to the central bank’s tapering of economic stimulus.
In energy markets, oil prices retreated amid renewed concerns about demand recovery. Brent crude declined 71 cents (-0.98%) at $71.54 per barrel and U.S WTI declined 80 cents (-1.17%) at $67.56 barrel.
Indonesia Weekly Market Update
STOXX 50.. 4,168.26 (-0.31%)
CAC 40.. 6,661.95 (-0.22%)
DAX.. 15,814.87 (-0.29%)
FTSE 100.. 7,124.47 (-0.36%)
NIKKEI.. 27,742.29 (+0.06%)
HSI.. 25,415.69 (-1.08%)
SHCOMP.. 3,501.66 (-1.09%)
TAIEX.. 17,066.96 (+0.12%)
KOSPI.. 3,131.87 (-0.47%)
S&P/ASX 200.. 7,491.23 (-0.54%)
SENSEX.. 55,973.11 (+0.05%)
STI.. 3,108.42 (+0.03%)
DOW FUT.. 35,330.00 (-0.08%)
S&P FUT.. 4,486.25 (-0.15%)
NASDAQ FUT.. 15,326.75 (-0.24%)
For previous market review : Market Review (10) 24.08.2021
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