JAKARTA (TheInsiderStories) – Bank Indonesia (BI) will announces the position of BI-7 Days Reverse Repo in this month and the third quarter assessment. Last month, the central bank make a fourth straight cut during this year, after decided cut the BI-7DRR by 25 bps to 5 percent, the Deposit and Lending Facility by 25 bps to 4.25 percent and 5.75 percent, respectively.
While, United States (US) Federal Open Market Committee decided to lower the target range for the federal funds rate (FFR) to 1-1/2 to 1-3/4 percent. The minutes signaled the committee was in no hurry to reassess the path of interest rates.
From Asia, China decided to lowered its lending benchmark rate, just a day after the People’s Bank of China (PBoC) governor Yi Gang said the central bank would step up credit support and lower real lending rates to support to real economy.
The one-year loan prime rate (LPR) fell five basis points to 4.15 percent from 4.20 percent in October and the five-year LPR was lowered by the same margin to 4.80 percent from 4.85 percent. Yi said, China will continue to implement a prudent monetary policy and see banks contribute more to financing the real economy.
From Europe, President Vladimir Putin said that Russia and The Organization of the Petroleum Exporting Countries (OPEC) have a common goal of keeping the oil market balanced and predictable. In October, Russia cut its oil output to 11.23 million barrels per day (bpd) from 11.25 million bpd in September.
But the production was still higher than a 11.17 – 11.18 million bpd cap set for Moscow under the existing global deal. Energy minister Alexander Novak adds, Russia plans to produce between 11.17 – 11.25 million bpd. The OPEC scheduled to meet on Dec. 5 in Vienna, followed by talks with a group of other exporters, including Russia.
From Indonesia, Fitch Solutions sees Indonesia’ economic growth in 2019 not in accordance with its previous estimates. It said, this year, the country’ economic growth is likely to stagnate and will weaken.
The agency sees Indonesia’ economic growth will be at 5.1 percent level from initial estimating could be at 5.3 percent. This was caused by the tendency of Indonesia’ economic growth in the three quarters of 2019 to be stagnant. In fact, the household consumption trend also weakened from 5.2 percent in 2Q of 2019 to 5.0 percent in 3Q of 2019.
Likewise, gross fixed capital also declined from 5.0 percent to 4.2 percent and there was also a tendency for weak demand so that imports of goods and services contracted to reach 9.0 percent compared to a 6.7 percent decline in the previous quarter. However, Fitch saw a slight increase in export performance, which amounted to 0.02 percent which can be a cushion for economic growth this year.
Yesterday, finance minister Sri Mulyani Indrawati met deputy prime minister/finance minister of Singapore Heng Swee Keat. During the meeting she discussed the Double Tax Avoidance Agreement with Singapore, followed the memorandum of outstanding between the directorate general of customs and excise and Singapore in order to strengthen surveillance of smuggling actions.
At the same day, the Corruption Eradication Commission detained former president director of PT Lippo Cikarang Tbk (IDX: LPCK), Bartholomeus Toto on Meikarta‘ bribery case. The detention was carried out after the investigators conducted a 10-hour inspection. Toto himself has been examined as a suspect three times.
While, Indonesian Stock Exchange (IDX) continues to follow up the process of delisting the shares of PT Golden Energy Mines Tbk (IDX: GEMS). This is because the company’ shares have not been traded for 21 months and will reach 24 months on Jan. 30, 2020.
Based on stock exchange rule, the bourse will remove the issuer’ stock if the company’ shares are subject to suspense on the regular market and the cash market for at least 24 months. Golden Energy took the floor on the IDX on November 17, 2011 and offered 882.35 shares at an offering price of Rp2,500 per share.
On Wednesday, Indonesian Rupiah, edged down 0.03 percent to 14,095 and the middle rate of BI depreciated 0.04 percent to 14,097 A US dollar. And the Jakarta Composite Index (JCI) closed up 0.04 percent tot6,155.10 compared to prior day.
Some analysts rated, the two major instruments movement largely influenced by the domestic sentiment, especially BI’ monetary policy. From global, the unclear trade negotiations between US and China.
The lack of clarity in trade negotiations has make the market inclined to be cautious. They said, if BI lowering this interest rate is will be a positive sentiment for the financial market.
With all various data, the analysts sees the local currency will moves in the range of 14,030 to 14,140 against the Greenback. While, the composite index still has potential to strengthening in the levels of 6,170 and 6,240 on Thursday.
The stocks to be watch for today are PT Ace Hardware Indonesia Tbk (IDX: ACES), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Aneka Tambang Tbk (IDX: ANTM), PT Telkom Indonesia Tbk (IDX: TLKM), and PT Bank Central Asia Tbk (IDX: BBCA).
In addition, PT Barito Pacific Timber Tbk (IDX: BRPT), PT Bank Mandiri Tbk (IDX: BMRI), PT Unilever Indonesia Tbk (IDX: UNVR), PT Bank Permata Tbk (IDX: BNLI), PT AKR Corporindo Tbk (IDX: AKRA), PT London Sumatera Plantation Tbk (IDX: LSIP), and PT Lippo Karawaci Tbk (IDX: LPKR) shares.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia