JAKARTA (TheInsiderStories) – The Indonesia Stock Exchange (IDX) revokes all short selling transaction in the stock market followed the drowned of the Jakarta Composite Index (JCI). The regulators said, the short selling transactions ban will implemented until to the deadline to be determined later.
Based on the official data, throughout the year the index has fell 13.44 percent. Today, in the first session, the JCI fell 1.02 percent to 5,397.31 compared to last weekend. The Rupiah also weaken by 0.4 percent to 14,375 against the US Dollar at the first session.
In 10 trading days, the local currency has weakened 4.81 percent from Rp13,660 on Feb. 17. This decline was also experienced by all major world exchanges, including Southeast Asian (ASEAN) markets.
The highest decrease was experienced by Thailand and followed by Indonesia, the Philippines, Vietnam, Malaysia and Singapore with decreases of -15.03 percent, -13.44 percent, -13.15 percent, -8.2 percent, -6.68 percent, and -6.57 percent, respectively.
According to IDX, the decline in the last week of February was the biggest contributor to the decline in the in the global major exchanges and ASEAN. The highest decreases were experienced by the Philippines and followed by Indonesia, Vietnam, Singapore and Malaysia with weekly decreases of -7.9 percent, -7.3 percent, -5.45 percent, -5.34 percent and -3.17 percent.
It said, the investors’ anticipation of the impact of the coronavirus which is expected to expand to other countries has give an impact on the global economic and trade activities. Furthermore, IDX said has coordinated with Financial Service Agency and the government to formulate initiatives and incentives to be provided in order to anticipate the impact of the virus in the Indonesian capital market.
In the midst of negative sentiment surrounding the global financial markets, the agency urged the investors not to panic and continue to invest based on in-depth analysis.
On Friday (03/02), Bank Indonesia’ governor Perry Warjiyo, reported as of Feb. 27, total net foreign fund outflows amounted to Rp30.8 trillion (US$2.2 billion). Other sentiments that might affect the instruments were domestic data, such as manufacturing PMI which contracted 49.3 in January. In addition there is inflation data for Indonesia in February.
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