The economists expect the Bank Indonesia to maintain the seven days repo rate at 4 percent. - Photo: Privacy

JAKARTA (TheInsiderStories) – Good Morning! After two-days meeting, today Bank Indonesia will announces the latest monetary policy. Last month, the central bank decided cut its 7-Day Reverse Repo Rate by 25 basis points to 4.25 percent, Deposit Facility rate to 3.50 percent, and Lending Facility rate to 5.0 percent.

At the same day, the central market also releases Indonesian foreign debt statistics in May 2020. Other agenda are the shareholders’ meeting of PT Bank Capital Indonesia Tbk (IDX: READ), PT Jembo Cable Company Tbk (IDX: JECC), PT Jaya Konstruksi Manggala Pratama Tbk (IDX: JKON), PT London Sumatera Indonesia Tbk (IDX: LSIP), PT Bank Mayapada International Tbk (IDX: MCOR), and PT Millenium Pharmacon International Tbk (IDX: SDPC).

The market also awaits a series of Chinese economic data, including the country’ second quarter economic growth and industrial production for June. Data releases will be awaited as a clue about the country’ economic recovery from the COVID-19.

Still from the China, Beijing threatens impose sanctions on United States (US) institutions and individuals following the revocation of the special status granted by its competitor to Hong Kong. Secretary of state, Mike Pompeo said it would support countries that recognize that China violated their territorial claims in the South China Sea region.

He also said, that the Washington would provide assistance both in multilateral bodies and in Southeast Asian region, legal assistance, and all that can be done. Pompeo’ remarks were the latest tough stance by President Donald Trump’ administration to challenge China, which was made an enemy ahead of the November presidential elections.

In the commodity market, oil prices surged to their highest level in four months after Trump indicated he did not want to add more sanctions to China. On Wednesday, the price of the West Texas Index oil contract in August 2020 rose to US$41.20 a barrel. While, the September Brent oil contract jumped to $43.79 per barrel.

Yesterday, the Jakarta Composite Index edged down 0.07 percent to 5,075.798 and Indonesian Rupiah plunged 0.95 percent to 14,588 per US Dollar from the previous day. Analysts assessed the weakening of the two is dominated by a lot of negative news from the external.

Starting from news of Singapore’ economy to be experiencing a recession to economic data in Europe and the US are sluggish. The the tensions between countries around the globe.

Today the local currency is expected to move between 14,500 – 14,600 against the American Dollar and the stock index between 5,043 – 5,095. Shares that can be monitored today are PT PP Tbk (IDX: PTPP), PT Jasa Marga Tbk (IDX: JSMR), PT Bank Centra Asial Tbk (IDX: BBCA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), and PT Bank Negara Indonesia Tbk (IDX: BBNI).

Then, PT Astra Agro Lestari Tbk (IDX: AALI), PT CIMB Niaga Tbk (IDX: BNGA), PT Telkom Indonesia Tbk (IDX: TLKM), PT HM Sampoerna Tbk (IDX: HMSP), PT Vale Indonesia Tbk (IDX: INCO), and LSIP.

May you have a profitable day!

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