Indonesia Weekly Stock Market Update
Indonesian stocks tumbled amid taper tantrum in global markets, sending composite index below psychological level of 6,000, while foreign inflows continued. Bank Indonesia held interest rates unchanged in August policy meeting.
Jakarta composite tumbled 125.828 points (-2.057%) to 5,992.322 while LQ45 slumped 2.21% to 850.738. There were 24.784 billion shares traded worth of Rp14.108 trillion, including transaction of Rp842 billion in negotiation market. Foreign investors purchased a net Rp339.47 billion in regular market. 120 shares rose while 407 declined and 120 unchanged.
Selling pressure slightly eased after Indonesia’s central bank left its benchmark interest rate at a record low to protect the currency amid uncertainty about the course of the pandemic.
Bank Indonesia kept the seven-day reverse repurchase rate at 3.5% on Thursday to maintain the exchange rate and financial system amid low inflation. The central bank also said that it had formulated a plan to deal with eventual U.S. policy tightening.
The Financial Services Authority issued three Financial Services Authority Regulations concerning Commercial Banks, the Products of Commercial Bank and Reassessment of Main Parties of Financial Services Institutions, as an effort to encourage the financial services industry, especially banking, to be more efficient, competitive, adaptive to the needs of the community and contribute to the national economy.
According to JISDOR released Thursday afternoon, Rupiah retreated 30 points (-0.21%) to 14,414 while spot rate weakened 30 points (-0.21%) at 14,400.
Shares in Asia-Pacific fell to the lowest this year in Thursday morning trade following overnight losses on Wall Street after the release of the U.S. Federal Reserve’s July meeting minutes.
The Federal Reserve’s July gathering showed officials made plans to pull back the pace of their monthly bond purchases likely before the end of the year. The focus has shifted to next week’s Jackson Hole Symposium. Traders will scrutinize Fed Chair Jerome Powell’s keynote speech for hints about the timing of a taper announcement
In Europe, investors are also following the latest geopolitical events after the U.S. decision to withdraw its troops from Afghanistan.
On the data front, new jobless claims are due in the U.S.
Cryptocurrency prices continue to be in the red on Thursday. Meanwhile, gold prices fell on Thursday, as dollar strengthened after U.S. Federal Reserve’s policy meeting minutes showed that its officials were largely on board to start easing bond purchases this year.
In energy markets, Crude prices extended their losses into a sixth day on Thursday, hovering near 3-month lows, hurt by growing fears over slower fuel demand amid a spike in Covid-19 cases worldwide while an unexpected rise in U.S. gasoline inventories added to pressure. Brent crude fell $2.25 (-3.3%) at $65.96 per barrel and U.S WTI declined $2.53 cents (-3.86%) at $62.93 barrel. U.S. crude inventories fell 3.2 million barrels last week to 435.5 million barrels, their lowest since January 2020, but gasoline stocks rose by 696,000 barrels to 228.2 million barrels, against analysts’ expectations for a 1.7 million-barrel drop.
Indonesia Stock Market Update
STOXX 50.. 4,094.89 (-2.26%)
CAC 40.. 6,577.17 (-2.85%)
DAX.. 15,663.66 (-1.89%)
FTSE 100.. 7,010.60 (-2.21%)
NIKKEI.. 27,281.17 (-1.10%)
HSI.. 25,316.33 (-2.13%)
SHCOMP.. 3,465.56 (-0.57%)
TAIEX.. 16,375.40 (-2.68%)
KOSPI.. 3,097.83 (-1.93%)
S&P/ASX 200.. 7,464.64 (-0.50%)
SENSEX.. 55,629.49 (-0.29%)
STI.. 3,089.21 (-1.35%)
DOW FUT.. 34,504.00 (-1.10%)
S&P FUT.. 4,351.50 (-0.98%)
NASDAQ FUT.. 14,720.50 (-0.87%)
For previous market review : Market Review (8) 16.08.2021
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