JAKARTA (TheInsiderStories) – Good Morning ! This afternoon, Bank Indonesia (BI) will make a decision on the latest monetary policy for this month. In July, the central bank has cut the benchmark rate by 25 basis points to 4 percent.
Some observers sees Bank Indonesia will hold the seven-days repo rate. Then head of fiscal policy at finance ministry, Febrio Kacaribu has agenda to give a press briefing on the potency and expansion of National Economic Recovery Program to the domestic economy.
From global, relations between the United States (US) and China continue to heat up. This time, China reduced its ownership of US government bonds. Based on statistics from the US Treasury, China’s ownership of US debt securities only reached $ 1.07 trillion in June. That value decreased $ 9.3 billion from the previous month.
While, the energy ministers from Organization Petroleum Exporters Countries and its allies has agenda to meet today to evaluates the global oil market condition. Recently, the producers has trimmed oil-demand growth by 100,000 barrels per day to 9.1 million barrels per day.
Yesterday, the Rupiah weakened 0.34 percent to 14,845 per US dollar and the Jakarta Composite Index (JCI) closed up 0.90 percent to 5,295.17 points. This is the highest index position since March 10 was closed at 5,220.83 points.
According to the analysts, although BI reported a balance of payments (BoP) in the period April – July 2020 a surplus of US$9.2 billion, but the statistics bureau data, who reported that imports in July grew negatively or contracted give a negative sentiment for the financial market.
For information, the value of Indonesia’ imports was recorded at $10.47 billion in July, or a contraction of 32.55 percent compared to the same period the previous year and the value of exports fell 9.9 percent to $13.73 billion from last year. This leaves the trade balance a surplus of $3.26 billion.
According to them, although the BoP is not in a minus, the fall in exports and imports has prompted the alarm to return. There is a possibility that the economy in the third quarter of 2020 will contract again, they said.
On the other hand, the continued strengthening of several commodity prices, such as gold +0.83 percent, nickel +0.75 percent, and tin +1 percent, have the opportunity to be the catalyst for both of them to regain their strength in today’ trading.
On Wednesday, analysts predict that the Rupiah may still weaken at the level of 14,820 – 14,920 versus the US Dollar. While, the JCI has potential to going stronger in the range 5,070 to 5,200.
Stocks that can be watched for today are PT HM Sampoerna Tbk (IDX: HMSP), PT Bank Mandiri Tbk (IDX: BMRI), PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT Unilever Indonesia Tbk (IDX: UNVR) and PT Bank Rakyat Indonesia Tbk (IDX: BBRI).
Then, PT Gudang Garam Tbk (IDX: GGRM), PT Wijaya Karya Tbk (IDX: WIKA), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT United Tractors Tbk (IDX: UNTR), PT Charoen Phokpand Indonesia Tbk (IDX : CPIN), PT Semen Indonesia Tbk (IDX: SMGR), PT Merdeka Copper and Mining TBk (IDX: MDKA), and PT Perusahaan Gas Negara Tbk (IDX: PGAS) stocks.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team. Please Read Our News to Get More information about Indonesia