JAKARTA (TheInsiderStories) – Good Morning! The House’ budget committee approved the government regulation in lieu of law Number 1 of 2020 regarding State Finance and Financial System Stability for Handling the COVID-19 Pandemic in Order to Face Threats that Endanger of the National Economy or Financial System Stability. Furthermore, the chairman, Said Abdullah stated, the draft of the act will be brought to the plenary meeting to be ratified.
Last night, in the meeting of non-aligned movement, President Joko Widodo invited the heads of state and government to unite against the COVID-19. In a virtual summit lead by , he asserted that the pandemic is far from over.
Therefore, he invited the countries to move quickly, carefully and strategically to tackle the virus outbreak and translating the political solidarity into concrete cooperation. The President added, the Group of 20′ commitment to suspend debt payments for low-income countries needs to be implemented.
In Asia, the Japanese parliament approved Prime Minister Sinzo Abe’ plan to extend the emergency status until May 31 after he signaled that easing still needed time from the early period ended on May 6. The economy minister, Yasutoshi Nishimura said, the government would consider easing outside the red zone, when conditions had shown a positive trend.
A total of 13 prefectures in Japan including Tokyo and Osaka have set a special emergency status, while 34 other prefectures do not. As of Sunday, the number of COVID-19 cases in Japan reached 14,900, the lowest among the Group of seven countries.
Yesterday, stocks ended the day in the green as investors managed to shake off worries about potential United States (US) – China battles, which could take months to materialize. While, oil prices extended its rally into a fifth day on signs that a glut might be easing as leading producers slash their activity.
West Texas Index crude price climbed 3.1 percent on Monday to US$21.72 a barrel and Brent crude price jumped to $28.29 per barrel. Genscape reported a 1.8 million barrel build in inventories in Cushing, Oklahoma, lower than usual stockpiles.
On Monday, Indonesian Rupiah closed down 1.47 percent to 15,100 compared to the US Dollar and the Jakarta Composite Index dropped by 2.35 percent to 4,605.49 compared to last week.
Some analysts rated, the weakening of the two major instruments was suspected by the IHS Markit report related to the Indonesian Manufacturing Purchasing Managers’ Index (PMI) at 27.5 in April from March at 43.5. The level became the lowest since April 2011.
The latest data shows that the contraction in the Indonesia’ PMI is getting deeper, as a result the performance of the Rupiah is getting worse. According to Markit the policy of large-scale social distancing in the context of combating COVID-19 was the cause of the contraction.
The market was also slightly hit by concerns after a statement from Donald Trump regarding the threat of new tariffs on China. This slightly increases concerns about the escalation of the US – China trade war.
In addition, the release of US manufacturing indicator data, durable goods and factory orders, could record figures greater than expected. Beside, the investors now would pay close attention to the release of data on Indonesia’ gross domestic product in the first quarter of 2020.
Its expected the economy to slow down compared to the previous quarter as a result of the spread of the COVID-19 in February and March. With the various data, the Rupiah its expecting move in the range 15,000 – 15,250 a US Dollar and JCI between 4,450 – 4,700 compared to Monday.
The stocks to be watch for today are PT Bank Centra Asia Tbk (IDX: BBCA), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Unilever Indonesia Tbk (IDX: UNVR), PT Gudang Garam Tbk (IDX: GGRM), PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Indofood Sukses Makmur Tbk (IDX: INDF). PT Nippon Indosari Corporindo Tbk (IDX: ROTI), PT Solusi Bangun Indonesia Tbk (IDX: SMCB), and PT Mayora Indah Tbk (IDX: MYOR).
May you have a profitable Day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia