Indonesia' foreign exchange (forex) reserves stood at US$138.8 billion in February 2021, slightly increase from the previous month of $138.0 billion - Photo by Shutterstock

JAKARTA (TheInsiderStories) – Good Morning! Bank Indonesia intervenes the money market after Rupiah dropped to 14,800 before closed down 0.23 percent to14,799 against the US Dollar on Wednesday (09/09). While, the Jakarta Composite Index also dropper 1.81 percent to 5,149.37 from a prior day.

The analysts rated, the weakening of both instruments was due to the steady contraction in retail sales. The data showed, the rate of core inflation is taking a dip, a sign that purchasing power is still weak. In August, Indonesia’ core inflation was recorded at 2.03 percent from a year ago, and is the lowest level since 2009.

The reintroduction of the large-scale social restriction by Jakarta provincial government starting Sept. 14, is estimating also has become a negative sentiment for the financial market. This condition confirms that the economic recovery will be severely hampered.

They said, the impact of the reinstatement of the policy will be felt within 1 – 2 days of the trading session while investors see other developments. But, they understand the re-implementation of the total restriction policy was a rational step from the government considering that the rate of daily COVID-19 positive cases continued to increase sharply in the last few days.

From global, the domestic market was overshadowed by the possibility of Britain leaving (Brexit) the European Union are stuck until next month. Prime Minister Boris Johnson has plans to tell the organization that his country is willing to leave the economic bloc without a treaty. He set an October 15 deadline for the deal.

The National Health Commission of China reported seven new cases of COVID-19, up from two the day before. It said that all new cases were imported infections involving travelers from abroad, marking the 25th consecutive day of no local transmission.

Based on the various information, the observers sees the Rupiah will move in the range 14,750 to 14,850 over the Greenback and the JCI between 5,150 – 5,400 The stocks to be watch are PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Negara Indonesia Tbk (IDX: BBNI), and PT Astra International Tbk (IDX: ASII).

Then, PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Bank Tabungan Negara Tbk (IDX: BBTN), PT Jamu Sido Muntjul Tbk (IDX: SIDO), PT Adhi Karya Tbk (IDX: ADHI), and PT Nippon Indosari Corpindo Tbk (IDX: ROTI).

May you have a profitable Day!

Written by Linda Silaen, Please Read Our News to Get More information about Indonesia