JAKARTA (TheInsiderStories) – Good Morning! Concern over President Mauicio Macri’ future hit the Argentina’ financial markets, sending the Peso dropped 4.29 percent to US$55.9 and S&P Merval Index plunging 48 percent in dollar terms. Peso closed weaker again following a second day of market turmoil triggered by opposition candidate Alberto Fernandez’ landslide victory in a primary election.
On Monday, the currency had hit an all-time low $65 to the US dollar, a drop of 30 percent, on fears that a Fernandez government could take Argentina back to interventionist economic policies. The central bank has sold a total $255 million of its own reserves since Monday in an effort to help steady the currency.
From Washington, United States (US) President Donald Trump was attacking a hands-off approach to pro-democracy protests in Hong Kong by Beijing. On Tuesday, protestors battled with police in Hong Kong’ airport yesterday, partially shutting down air traffic, Trump appeared ambivalent, telling journalists the situation was “very tricky.”
Bad news for Indonesia, the European Commission decided to impose countervailing duties of 8 to 18 percent on imports of subsidized biodiesel, as an effort by the organization to restore a level playing field for European Union (EU) producers.
Trade minister Enggartiasto Lukita responded he would recommend to an inter-ministerial team a 20 – 25 percent tariff on EU dairy products in response to the policy. The European Commission, which coordinates trade policy for the EU, launched an anti-subsidy investigation in December following a complaint by the European Biodiesel Board.
While, energy and mineral resources (EMR) ministry said may require an estimated $15 billion in investment to meet its target of reaching 7.2 gigawatt (GW) of geothermal power capacity by 2025 from currently less than 2 GW. Earlier, Vice President Jusuf Kalla said in the past decade the progress of geothermal power development has been “very slow” and the dependency on coal power has caused air pollution around Jakarta.
Beside EMR ministry, coordinating minister for maritime affairs, Luhut Binsar Pandjaitan also proposing State Budget funds for electric cars in 2020. In addition to electric cars, he also discussed the acceleration of the ban on nickel exports with the mineral producers.
Yesterday, US stocks halted a two-day slide and treasuries tumbled after the Trump administration de-escalated its trade war with China. The American leader said he delayed the tariffs to spare the Christmas shopping season after his representatives had a “productive” call with China.
In Indonesia, the exchange rate of JISDOR to Rupiah was ended at 14,283 over the Greenback. Today, the local currency still blanket with negative sentiment from the global market and move in the limited zone.
The Jakarta Composite Index closed down 0.63 percent to 6,210.96 level on Tuesday. Today the composite index its expecting move in the range 6,123 to 6,372.
For today, analysts recommended PT Jasa Marga Tbk (IDX: JSMR), PT Astra International Tbk (IDX: ASII), PT Bumi Serpong Damai Tbk (IDX: BSDE), PT Gudang Garam Tbk (IDX: GGRM), PT HM Sampoerna Tbk (IDX: HMSP), PT Steel Pipe Industry of Indonesia Tbk (IDX: ISSP), 5. PT Japfa Comfeed Indonesia Tbk (IDX: JPFA), PT Bank Negara Indonesia Tbk (IDX: BBNI), and PT Lippo Karawaci Tbk (IDX: LPKR) stocks to 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