JAKARTA (TheInsiderStories) – Good Morning! Investors around the globe concerns on the tension between China and the United States (US), which is increasingly heating up. They also waiting for a new stimulus package of President Donald Trump’ administration.
Following the tension between the two countries, the US Senate has approved a proposal to ban the use of TikTok application on devices issued by the government with the main reason of safety. Not only that, this rule also prohibits the use of other applications developed by ByteDance, the parent company of TikTok in Beijing.
In Asia, South Korean economy recorded its first technical recession since 2003 in June. The central bank reported, South Korea‘ gross domestic product (GDP) lowered by 3.3 percent. In comparison, in the previous quarter the country’ GDP declined by 1.3 percent.
Exports of goods and services dropped 16.6 percent, the worst figure since the last quarter of 1963. That was almost 40 percent of the country’ nominal GDP last year. However, private consumption, which accounts for nearly half of the country’ GDP, rose 1.4 percent on a quarter-on-quarter basis, up from a 6.5 percent decline in first quarter of 2020.
In Indonesia, President Joko Widodo has schedule to lead a cabinet meeting and channeling revolving funds to cooperatives in the framework of national economic recovery. While, the coordinating minister for maritime and investment affairs, Luhut B. Panjaitan have a schedule to evaluate domestic mineral prices benchmark and food estate.
Yesterday, Indonesian Rupiah closed up 0.62 percent to 14,650 over the Greenback and the Jakarta Composite Index (JCI) edged down 0.09 percent to 5,110.19. Analysts said, despite optimism about the COVID-19 vaccine, concerns over the rise of new cases plus the pressure from rising gold prices become market attention.
The investors also await the opening of the Chinese market after US decided to close the country’ consulate in Houston, Texas. In addition, investors also pay attention to news related to the development of the COVID-19 vaccine.
Pharmaceutical company Pfizer’ shares surged after management said it had received an order of 600 million vaccine doses from the US government. The market also responded positively to the agreement of European Union leaders regarding the economic rescue package to deal with the pandemic.
From domestic, the government is working on developing a the COVID-19 vaccine and soon hold a third phase of trials. If successful, the state-owned drug markers, PT Bio Farma will produce a vaccine with a capacity of 100 million doses per year. The government is keen on handling COVID-19 because if its not taken seriously the virus will threaten economic sustainability.
Efforts to reduce the spread of the virus through social restrictions (social distancing) have been implemented, but less effective. This makes the economic wheel does not move, consequently the domestic economy continues to contract, said the analysts.
With all various data, they estimated the JCI to move in the range of 5,092 – 5,135. While, the Rupiah between 14,600 – 14,685 compared to the US Dollar.
The recommended stocks for today are PT Timah Tbk (IDX: TINS), PT Surya Citra Media Tbk (IDX: SCMA), PT Ciputra Development Tbk (IDX: CTRA), PT AKR Corporindo Tbk (IDX: AKRA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT HM Sampoerna Tbk (IDX: HMSP), PT Adaro Energy Tbk (IDX: ADRO), PT Astra International Tbk (IDX: ASII), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Bank Central Asia Tbk (IDX: BBCA), and PT United Tractors Tbk (IDX: UNTR).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team. Please Read Our News to Get More information about Indonesia