JAKARTA (TheInsiderStories) – Good Morning! Global shares plunge amid brutal selling by investor and headed for the worst week since the world financial crisis in 2019. Dowjones stock index dropped sharply by 1,190 as fears of coronavirus outbreak.
In Indonesia, the Rupiah touched the level 14,000 against after lowered by 0.61 percent to 14,025 a US Dollar amid the pandemic. The weakening also occurs the Jakarta Composite Index, on Thursday, fell 2.69 percent to 5,535.69 compared to previous day. This is the lowest level since March 16, 2017, at 5,518.24.
In United States (US), the S&P closed down 4.4 percent, The Dow Jones Industrial Average was down nearly 4.4 percent and Nasdaq Composite slumped 4.6 percent as investors feared a jump in coronavirus infections in the country could derail economic growth.
President Donald Trump statement that the risk from the COVID-19 remained “very low,” has no energy to support the market. Trump itself has announced is seeking US$2.5 billion from Congress to boost the government’ response on the impact of the pandemic.
South Korea’ vice finance minister, Kim Yong-beom vowed to deploy “all possible measures” to stabilize financial markets as he sees economic indicators from production to consumption dwindling from the increasing number of new coronavirus infections. The country reported 505 additional coronavirus infections in its largest daily increase on Thursday, taking the national tally to 1,766.
Followed the virus outbreak, Japan’ prime minister Sinzo Abe had instruct all school to shutdown for a month in March. The Australian government also plans to issue a stimulus to the economic sectors affected by the coronavirus outbreak.
Until Thursday, Chinese government reported nearly 80,000 infections and more than 2,700 deaths. The virus has spread to another 44 countries, where around 3,500 cases and 54 deaths have been reported.
In the commodity market, global oil prices also fallen in line with growing concern over the transmission of the coronavirus and its impact on the economy. On Thursday the price of the April 2020 West Texas Index oil contract fell 3.37 percent to $47.09 a barrel. The Brent oil prices also closed down 2.34 percent $52.18 per barrel. The prices declined in five consecutive sessions.
President Joko Widodo has scheduled to meet Masayoshi Son from Japan’ Softbank and former prime minister Toni Blair to talk further on the new capital. Indonesian government has appointed both as a member of new capital steering committee lead by Uni Arab Emirate (UAE) Prince Prince Sheikh Mohammad bin Zayed.
Their presence increase the selling value of the new capital city to investors to meet an estimated cost of Rp466 trillion (US$32.7 billion) for its construction. UAE government together with Softbank and United States International Development Finance Corporation its expecting invest $22.5 billion through a sovereign wealth fund created by the government.
Some analysts rated, the Rupiah and JCI’ correction was due to market concerns over the coronavirus impact. Because the global economy is affected by viruses that continue to spread to various countries. The intervention carried out by the central bank could not bring both instruments strengthen.
Based on the various development, the observers sees the Rupiah still depress by global market and move in the range of 14,960 – Rp14,060 against the US Dollar. While, the JCI between 5,520 and 5,580.
They recommended PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Astra International Tbk (IDX: ASII), PT Jasa Marga Tbk (IDX: JSMR), PT Wijaya Karya Tbk (IDX: WIKA), PT Adhi Karya Tbk (IDX: ADHI), PT Telkom Indonesia Tbk (IDX: TLKM), PT HM Sampoerna Tbk (IDX: HMSP) stocks to be watch for today.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia