Hong Kong Leader to Withdrawal Extradition Bill - Photo by SMCP

JAKARTA (TheInsiderStories) – Good Morning! Hong Kong Chief Executive Carrie Lam formally withdrawal the extradition bill in order to fully allay public concerns after sparked the worst political crisis has seen in decades. But critics say the decission is unlikely to bring an end to intensifying unrest, which has rocked the city for more than 13 consecutive weeks and is now driven by a host of other objections

In her speech, Lam said the government will take four actions to initiate a dialogue to find a way out of the current impasse for Hong Kong. She said the government will fully support the work of the Independent Police Complaints Council (IPCC) and will seriously follow up the recommendations made in the the report.

From Europe, Member of Parliament (MP) blocked British prime minister Boris Johnson’ no-deal Brexit in its first stage hearing. It now moves to a final stage, before being voted on later.

The trade deficit between United States (US) and China dropped 2.7 percent to $54.0 billion as exports rebounded and imports fell, said the commerce department yesterday. The sensitive goods trade deficit with China increased 9.4 percent to $32.8 billion, the highest since January, with imports jumping 6.4 percent.

While, exports to China fell 3.3 percent in July. US exports to China have declined 18.2 percent in the first seven months of this year and imports are down 12.3 percent. The trade deficit with the European Union raced to a record high in July, with the shortfall with Germany the largest since August 2015.

From Asia, Chinese exports rebounded in July, buoyed by increased shipments to Europe and Southeast Asia. The 3.3 percent rise in exports compared with a year earlier reverses a 1.3 percent decline in June, data from the General Administration of Customs showed. This marks a sign of vitality for a sector challenged by the trade fight with the US and often lackluster global demand.

Yesterday, India has raised the tax on refined palm oil from Malaysia to 50 percent from originally 40 percent for six months to curb imports and boost local refining. Since January, shipments of refined palm oils from Malaysia have been taxed at 45 percent.

On Papua riots, the United Nations High Commissioner for Human Rights has raised concerns over reports of militia being used against protesters. Michelle Bachelet has also called for restoration of internet in the region, which has been partially shut down since protests started, two weeks ago.

She said the blackout is “likely to contravene freedom of expression,” and is calling on Indonesian authorities to enter into dialogue with the people of the two provinces. The head of United Liberation Movement for West Papua Benny Wenda has welcomed the statement from the UN High Commissioner but told Pacific Beat more needs to be done than just talk.

In Indonesia, Rupiah and the Jakarta Composite Index (JCI) rebounded from its weakening boosted by the development in Hong Kong. Rupiah closed up 0.48 percent to 14,160 against the US dollar and JCI successfully rose 0.13 at 6,269.66 after being corrected two days in a row.

Five of the nine sectors ended in the green zone, led by mines (+1.16 percent) and trade (+0.73 percent). Four other sectors closed in the red zone, led by infrastructure which fell 0.38 percent while limiting the magnitude of the increase in the composite index.

Of the 651 shares traded on the Indonesia Stock Exchange (IDX) today, 219 shares gained, 195 shares weakened, and 237 shares stagnated. However, net selling by foreign investors continued in the third consecutive trading day with worth of Rp843.87 billion (US$59.43 million). Total value of transactions around Rp7.24 trillion with a trading volume of around 13.18 billion shares.

For today, analysts recommende PT Intiland Development Tbk (IDX: DILD), PT Puradelta LestariTbk (IDX: DMAS), PT Smartfren Telecom Tbk (IDX: FREN), PT MNC Vision Networks Tbk (IDX: IPTV), PT Vale Indonesia (IDX: INCO), PT XL Axiata Tbk (IDX: EXCL), PT Summarecon Agung Tbk (IDX: SMRA), PT Trada Alam Mineral (IDX: TRAM), and PT Puradelta Lestari Tbk (IDX: DMAS) stocks to be watch.

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia