Bank Indonesia Headquarters in Jakarta - Photo: Privacy

JAKARTA (TheInsiderStories) – Good Morning! After posted current account deficit (CAD) widened to US$8.4 billion or 3 percent of the gross domestic products (GDP) in the second quarter (2Q) of 2019, now the investor awaits for 3Q data. In the previous quarter the position stood at $7 billion or 2.6 percent of GDP.

At the same day, minister of trade met media to discuss about the latest policy on trade and related to the latest trade issues. The new minister and vice minister has job to boost Indonesian export in the coming year.

Based on Statistics data, in nine months the country recorded a trade deficit  US$1.95 billion. This value is better than the deficit in 9M of 2018 which reached $3.8 billion. This deficit originated from the export value of $124.1 billion and imports of $126.1 billion.

On the policy side, Indonesian government will proposed two new laws, namely Employment Creation and Taxation to parliament. At the same time, the state prepared omnibus law to simplify the regulation across the nation.

From the stock market, Japan’ Sumitomo Mitsui Financial Group (8316.T) and Singapore lender OCBC Group Holdings (OCBC.SI) are reported compete to buy local lender PT Bank Permata Tbk (IDX: BNLI). British’ Standard Chartered Plc (STAN.L) and Indonesian conglomerate PT Astra International (IDX: ASII) plans to release their stakes at the bank, with estimating values about $2.7 billion.

In addition, two new issuers, PT Ginting Jaya Energi Tbk (IDX: WOWS) and PT Singaraja Putra Tbk (IDX: SINI) list their shares today at the local bourse. Both raised Rp337.5 billion ($24.11 million) and Rp18.9 billion, respectively.

Yesterday, Indonesian Rupiah rose 0.18 percent to 13,998 and the middle rate Bank Indonesia weakened 0.34 percent to 14,040 per US dollar. Meanwhile, the Jakarta Composite Index (JCI) fell 0.84 percent ​​to 6,165.62 yesterday.

Some analysts rated, the combination of external and internal sentiment supports the local currency and stock index movement. Release of Indonesia’ foreign exchange reserves in October, which rose to $126.7 billion, succeeded in sustaining the Rupiah.

From the global side, trade negotiations between China and the United States (US) also gave a fresh air for emerging market. Both agreed to lift the entrance fee. The two largest economy have agreed to reduce import tariffs as part of the first phase of a trade agreement.

The agreement provides a new sign of progress even though a number of differences that have been going on for months have not yet reached a common ground.

Different from money market, foreign investors still withdraw funds from the stock market, which recorded net sell-offs Rp2.47 trillion in all markets. President Joko Widodo’ intervention sentiment that asked banks to cut interest rates on loans hasl affected the market and keeps investors out.

Since Wednesday (06/11), many of banking stocks have been eroded, said the observers. They estimated JCI could rebound as long as good sentiment still entered the market.

For today, they predicted Rupiah moves between 13,850 – 14,050 over the Greenback and the JCI in the range of 6,120 – 6,242. Stocks to be watch are PT Surya Citra Media Tbk (IDX: SCMA), PT Timah Tbk (IDX: TINS), PT Aneka Tambang Tbk (IDX: ANTM), PT PP Tbk (IDX: PTPP), and PT Waskita Karya Tbk (IDX: WSKT).

Then Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Telkom Indonesia Tbk (IDX: PGAS), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Astra Agro Lestari Tbk (IDX: AALI), PT Semen Indonesia Tbk (IDX” SMGR), and PT Astra International Tbk (IDX: ASII).

May you have a profitable day!

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