G-20 Finance Minister and CB Governors Meeting at Nusa Dua, Bali (11/10) - Photo by the Committee

JAKARTA (TheInsiderStories) – Good Morning.This week, market participants may stay on the sideline in view of Bank Indonesia, European Central Bank (ECB), Turkey monetary policy meeting and United States (US) economic data.

Previously BI raised its benchmark rate 25 basis points to 5.75 percent, ECB hold the interest rate 0 and 0.75 percent, while Turkey blistering 24 percent from previously 17.75 percent

Negative sentiments may come from the announcement of China’s third quarter GDP data, which grew 6.5 per cent on-year versus 6.7 per cent on-year in the earlier quarter. It was the weakest growth rate since the first quarter of 2009, as the ongoing trade war with the US puts pressure on manufacturing activities.

The investors also anticipating for the release of first reading of the United States’ (US) GDP for the third quarter. The world’s largest economy has been expanding at accelerating pace, creating pressures on emerging market.

Domestic market was mixed last week. The Jakarta Composite Index gained 1.40 per cent last week with foreign investors net bought equity worth Rp1.2 trillion. The index was strong on the back of expectation on robust corporate earnings.

The Rupiah continued to be under pressure, ending the week at 15,221 per US$1 versus 15,194 per US$1 in the previous week, according to BI’s reference rate.

The government debt auction on Tuesday may lend a positive sentiment on the rupiah. The government seeks to raise as much as Rp20 trillion (US$1.38 billion) from auction of benchmark bond series and treasury bills.

Equity investor continued to be in selective buy mode. The hot pick for this week could be PT Indosat Tbk (IDX:ISAT) which recently installed a new CEO. Rudiantara, the Communication and Information Minister, said the appointment of a new chief executive shows that Indosat has a grand plan, fueling rumors that the telecommunication industry may see some corporate consolidation.

May you have a profitable day.

US$1: Rp14,500

Written by TIS Intelligence Team

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