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Morning Briefing: Indonesia Shortens Trading Hours

The Financial Services Authority (FSA) shortened stock transaction hours to support the government' steps to prevent the spread of COVID-19 and the harmonization of policies in the financial services sector - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Good Morning! The Financial Services Authority (FSA) shortened the money and stock transaction hours to support the government’ steps to prevent the spread of COVID-19 and the harmonization of policies in the financial services sector. Starting March 30, session I start 09.00 a.m to 11.30 a.m and session II starting 13.30 p.m. to 15.00 p.m. eastern time.

On Tuesday, the government has raised Rp12.14 trillion (US$758.75 million) from state retail SUKUK with SR012 series. It was the first Retail Sukuk sold online using the asset to be leased contract.

In the same day, spokesman of COVID-19 task force, Achmad Yurianto reported, the biggest daily increased with t107 new Tuesday, seven more people had died of the disease as and bringing the total number of deaths to 55, and the number of patients who have recovered from the virus remained unchanged at 30.

Globally, the number of infections had crossed 392,000, with the death toll touching 17,147 and 103,393 patients recovering from the disease. China recorded the highest number of cases at 81,171, followed by Italy with 63,927 cases, US 46,116 cases, Spain 35,136 cases, Germany 29,056 cases, Malaysia 1,624 cases and 15 deaths, followed by Thailand with 827 cases and 4 deaths.

In India, Prime Minister Narendra Modi ordered a three-week nationwide lockdown starting at midnight Wednesday in a bid to tackle the spread of coronavirus. While, China’ Hubei Province, ground zero for the pandemic, plans to lift nearly all lockdown restrictions tomorrow.

At the meeting of Group 20 (G20), United Nation secretary general, Antonio Guterres, has asked the policymakers to help launch a stimulus package in the trillions of dollars to keep businesses, workers and households afloat in face of the coronavirus. By the end of this year, the cost of this pandemic is likely to be measured in the trillions of dollars, he told the Group in a letter dated March 23.

According to him, the G20, accounting for 85 percent of the world’ gross domestic product, has a direct interest and critical role to play in helping developing countries cope with the crisis. The organization also can help provide immediate liquidity relief to the private and financial sector in the developing world in the form of trade credits, liquidity lines and guarantee schemes, he adds.

In United States (US), President Donald Trump administration will use Defense Production Act for first time during virus outbreak to procure some 60,000 test kits. In America, COVID-19 cases top 50,000 with over 600 deaths.

US’ Congress and the White House are currently working on specifics of the US$2 trillion stimulus package that would provide direct cash to consumers and funding for business to name a couple of the provisions. Wall Street’ initial rise came from positive comments about the stimulus bill on Capitol Hill to combat the effects pandemic.

The Federal Reserve rolled out unprecedented measures also make US equities surge amid stimulus hopes. The Dow soars 15.34 percent, a biggest one-day percentage gain since March 15, 1933, the largest percentage gain since March 15, 1933.

Yesterday, Indonesian Rupiah strengthened 0.45 percent to 16,575 and the middle rate of Bank Indonesia rose 0.73 percent to 16,486 against the US Dollar. But, the Jakarta Composite Index fell 1.30 percent to 3,937.63 compared to previous day.

The analysts rated there is a chance that the local currency movement could be much more stable in the coming days. Plus the strengthening of the US dollar has also been overvalued. The Rupiah its expecting move in the range 16,400 – 16,500 and the JCI between 3,900 – 4,000.

Shares that can be considered today are PT Erajaya Swasembada Tbk (IDX: ERAA), PT Bank Mandiri Tbk (IDX: BMRI), PT Tjiwi Kimia Tbk Paper Factory (IDX: TKIM), PT AKR Corporindo Tbk (IDX: AKRA), PT Vale Indonesia Tbk (IDX: INCO), PT Adaro Energy Tbk (IDX: ADRO), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Telekomunikasi Indonesia Tbk (IDX: TLKM) , PT Tower Bersama Infrastructure Tbk (IDX: TBIG), PT Bank Central Asia Tbk (IDX: BBCA), and PT MNC Investama Tbk (IDX: BHIT).

May you have a profitable day!

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