JAKARTA (TheInsiderStories) – Good Morning! The Association Southeast Asian Nation (ASEAN) Leaders will convene today to discuss how to further strengthen cooperation on public health emergencies and put in place a robust post-pandemic recovery plan. As a chair in 2020, Prime Minister of Viet Nam, Nguyen Xuan Phuc, will preside over the opening ceremony of the Summit.
The Summit is expected to reaffirm the need for a post-pandemic recovery plan which will involve collaboration among industries, private sector and other stakeholders. Managing public health risks and reviving economies until an effective vaccine or treatment is found are high on the Summit’ agenda.
Economic growth projections released by the International Monetary Funf on Wednesday has put a pressures on all global stock exchanges. As is known, the agency projects a far deeper recession in 2020. Not only that, the recovery is estimated to be slower than the projections issued in April.
The Fund predicts global gross domestic product will contraction 4.9 percent in this year or deeper than the 3.0 percent projection. In 2021, growth is only estimated at 5.4 percent or down from the previous prediction of 5.8 percent.
On the other hand, the planned of state funds placement of Rp30 trillion (US$2.14 billion) in a state-owned banks did not get a response from the market. The investors are again worried about the development of the spread of COVID-19 which has not subsided, even in some countries there are spikes in new cases.
The analysts rated, the increase in cases will make a number of countries re-apply the regional quarantine even though its scope is limited. As a result, the prospect of global economic growth is believed to slow down.
On Thursday, the monetary board Bangko Sentral ng Pilipinas decided to cut the interest rate of overnight reverse repurchase facility by 50 basis points to 2.25 percent, effective starting today. The interest rates on the overnight deposit and lending facilities were reduced to 1.75 percent and 2.75 percent, respectively.
The policymakers observed that domestic economic activity has slowed with the enforcement of necessary protocols to slow the spread of the virus in the country. At the same time, the outlook for global growth has deteriorated further as considerable uncertainty still surrounds the extent of the health crisis.
On Thursday, Indonesian Rupiah was parked at the level of 14,175 per US Dollar or corrected 0.31 percent and the Jakarta Composite Index (JCI) corrected 1.37 percent to parking at 4,896.73 compared to the previous day.
According to the analysts, both instruments moves will limited as are still surrounded by negative sentiment. They predict the local currency will close stagnant at yesterday’ level and stock index between 4,865 – 4,975.
Stocks that can be considered by investors for today are PT Japfa Comfeed Indonesia Tbk (IDX: JPFA), PT Bumi Serpong Damai Tbk (IDX: BSDE), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Adaro Energy Tbk (IDX: ADRO ), PT HM Sampoerna Tbk (IDX: HMPS), PT Bukit Asam Tbk (IDX: PTBA), PT Pakuwon Jati Tbk (IDX: PWON), PT Bank Mandiri Tbk (IDX: BMRI), PT Aneka Tambang Tbk (IDX: ANTM), PT Telkom Indonesia Tbk (IDX: TLKM), and PT Bank Central Asia Tbk (IDX: BBCA).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia