JAKARTA (TheInsiderStories) – Global media reported, Indian soldiers were killed in heavy fighting with Chinese troops on the disputed border for a week in the western Himalayan region. The incident marked the deadliest clash between nuclear-armed neighbors in decades.
Indian officials say Chinese troops cross the border at three different points and set up tents and guard posts. Meanwhile, China accused India of crossing a “disputed border” between the two countries.
In the country, board governors of Bank Indonesia (BI) start their two-days meeting before make a decision on Thursday. At the last meeting the central bank maintained its benchmark rate at 4.5 percent.
Yesterday, Jakarta’ governor, Anies Baswedan and trade minister Agus Suparmanto re-opening of shopping centers around the capital city. The move give a breath of fresh air for the domestic economy.
Yesterday, finance ministry absorbed Rp20.50 trillion (US$1.46 billion) from the state bond auction. The treasury office reported, total incoming bids were worth Rp84.82 trillion, lower than the previous incoming bids of Rp105.27 trillion.
On Tuesday, Indonesia Rupiah closed up 0.18 percent to 14,090 per US dollar and the Jakarta Composite Index (JCI) jumped 3.53 percent to 4,986.46 compared to prior day. The analysts rated, a number of external sentiments have supported the strengthening of both instruments.
The main catalyst came after the Federal Reserve said it would buy corporate bonds in the secondary market. The purchase of debt securities on Tuesday is part of the previously announced stimulus scheme. Investors are also increasingly confident that the United States economy could rebound after President Donald Trump considers an infrastructure program whose value reaches $1 trillion.
Within the country, the strengthening of the JCI and Rupiah was supported by projection that Indonesia’ economic contraction in the second quarter of 2020 was not as deep as other countries in the region. Minister of finance Sri Mulyani Indrawati predicted Indonesia’ economic growth in the second quarter of 2020 will contraction 3.1 percent.
This was triggered by the adoption of large-scale social restrictions in some provinces in the country. For today, the analysts rated the market will driven by optimism that Indonesian economy will be normal.
Additional catalysts came from the Bank of Japan which maintains a loose monetary policy. In addition, the Japanese central bank is also optimistic that the economy will recover gradually after the collapse due to the corona virus pandemic.
Not to mention, the US and China plans to meet again for further trade talks. This makes investors prefer to go into risky assets, including the rupiah.
For today, the observers sees the Tupiah would move in the range of 13,950 – 14.150 versus American Dollar and the JCI between 4,920 – 5.030. Stocks to be watch for today are PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Central Asia Tbk (IDX: BBCA), PT United Tractors Tbk (IDX: UNTR), and PT Perusahaan Gas Negara Tbk (IDX: PGAS).
Then, PT Unilever Indonesia Tbk (IDX: UNVR), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Kalbe Farma Tbk (IDX: KLBF), PT Gudang Garam Tbk (IDX: GGRM), PT Jasa Marga Tbk (IDX: JSMR), PT Pakuwon Jati Tbk (IDX: PWON), and PT Astra Agro Lestari Tbk (IDX: AALI).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia