Bank Indonesia' Board of Governors - Photo by BI

JAKARTA (TheInsiderStories) – Good Morning! Bank Indonesia (BI) to announce its monetary stance today after two-days meeting. Last month, the central bank cut BI-7DRR rate 25 basis points to 5.5 percent, while deposit and lending facility rates at 4.75 percent and 6.25 percent, respectively.

For the second time United States (US) Federal Reserves cut its benchmark rate by a quarter point to to 1-3/4 to 2 percent. While, People’s Bank of China kept the one-year rate on medium-term loans steady amid the slowing economic growth.

The move from China’ central bank comes after its cuts the banks’ reserve ratios came into effect this week, adding an expected RMB800 billion (US$113 billion) in liquidity to the financial system.

In US, President Donald Trump said he wants tougher sanctions on Iran as his top diplomat arrived in Saudi Arabia to consult with leaders and build a case against Tehran after attacks on the kingdom’ oil facilities. Washington will announce the new penalties in the next 48 hours.

In Russia, Chinese Premier Li Keqiang met Vladimir Putin at the Kremlin to discuss bilateral relations. Li said this visit helped draw a comprehensive plan for exchanges and cooperation between China and Russia in various fields, and achieved a lot of new results.

China is willing to deepen the cooperation and strengthen exchanges with Russia, as well as jointly safeguard an international system with the United Nations and a multilateral trading system based on the World Trade Organization’ rules. He adds, that China stands ready to better synergize the Belt and Road Initiative with the Eurasian Economic Union.

From Saudi Arabia, Saudi’ finance minister Mohammed al-Jadaan claimed, an attack on Saudi Aramco had no impact on government revenues and authorities. The energy minister Prince Abdulaziz bin Salman said the kingdom will restore lost oil output by the end of September and has managed to restore supplies to customers to the levels they were at prior to the attacks.

From the country, Indonesian tech titan GOJEK received an undisclosed amount of investment from local life insurance company AIA Indonesia as part of its ongoing series F round. Under the strategic partnership, AIA will providing life and health insurance services and wellness offerings to the ride-hailing unicorn’ users, drivers, and merchants.

Then, state-owned lender PT Bank Mandiri Tbk (IDX: BMRI) disbursed loans to local miner PT Antam Tbk (IDX: ANTM) $129 million to refinance its previous miner debt, which will mature in June 2024. Its intended to improve the financial efficiency without changing the terms of the previous loan as well as having a floating interest rate that is more competitive than the previous interest rate.

In Asian market, Japan’ Topix and Nikkei 225 indexes closed down 0.49 percent and 0.18 percent respectively. But China’ Shanghai Composite index and CSI 300 were up 0.25 percent and 0.48 percent respectively.

On Wednesday, Rupiah and the Jakarta Composite Index (JCI) strengthening influenced by the anticipation of the Fed and BI decision. The local currency closed up 0.25 percent to 14,055 against the Greenback followed by the composite index jumped 0.64 percent to 6,276.63.

Today, the analysts rated there are a potential the two instruments weakened followed various sentiment from domestic and global. The JCI is estimating move in the range 6,230 – 6,290 while the local currency getting stronger.

The stock to be watch for today are PT Global Teleshop Tbk (IDX: GLOB), PT Bank Woori Saudara Indonesia Tbk (IDX: SDRA), PT Bank Mandiri Tbk (IDX: BMRI), PT Astra International Tbk (IDX: ASII), PT Delta Djakarta Tbk (IDX: DLTA), PT Sinar Mas Multiartha Tbk (IDX: SMMA), PT Kimia Farma Tbk (IDX: KAEF), and PT Indofarma Tbk (IDX: INAF).

US$: RMB7.08

May you have a profitable day!

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