North Korea and the United States have agreed to resume nuclear negotiations this weekend - Photo: Privacy

JAKARTA (TheInsiderStories) – United States (US) and North Korea have agreed to resume nuclear talks this week over the withdrawal of sanctions in exchange for disarmament. Choe Son Hui, North Korea’ first vice minister of foreign affairs, said the two nations will have preliminary contact on Friday before holding working-level talks on Saturday.

From US, Federal Reserves announced would offer a series of daily and 14-day term repos for an aggregate amount US$30 billion, each, said the central bank on Tuesday. The central bank also released daily repos as much as $75 billion until Oct. 10.

The policymakers stated that they planned to continue to “conduct operations as necessary to help maintain the federal funds rate (FFR) in the target range, the amounts and timing of which have not yet been determined.” As known, last month the Bank has cut FFR to a target range between 1.75 percent and 2 percent in mid-September.

While, US manufacturing sector contracted in September to its weakest level in more than a decade as business conditions worsened amid trade tensions between the country and China. The Institute for Supply Management said its index of national factory activity fell to 47.8, the lowest reading since June 2009. A reading below 50 signals the domestic factory sector is contracting.

Still from America, on Tuesday night, Trump has issued his most inflammatory condemnation yet of the impeachment investigation against him, labeling it “a COUP” designed to strip Americans of their freedoms. His statement comes after House Democrats launched an impeachment inquiry against Trump.

In the country, finance ministry has sold Sharia bond or SUKUK Rp7.12 trillion (US$504.96 million). The value of bids that entered the auction today was recorded Rp28.11 trillion.

SPNS02042020 series due on April 2, 2020 has a weighted average yield of 5.70 percent; PBS002 series will mature on Jan. 15, 2022 has a weighted average yield of 6.71 percent; PBS019 series mature on Sept. 15, 2023, has a weighted average yield of 6.90 percent; PBS022 series due on April 15, 2034, has a weighted average yield of 8.02 percent, and PBS015 series which mature on July 15, 2047, has a weighted average yield of 8.23 percent.

Bank Indonesia reported, liquidity or money supply grew slowly in August 2019 at Rp5,933.0 trillion or only grew 7.3 percent compared to the previous month’ of 7.8 percent in annual basis (YoY). While, the cash also slowed, from 8.0 percent to 7.4 percent (YoY) in August, influenced by slowing growth in savings and time deposits and foreign currency demand deposits.

The influencing factor, said the central bank, mainly due to net domestic assets, grew by 8.9 percent lower compared to the previous month’ growth of 10.1 percent (YoY). The main cause was the slowing down of lending from 9.7 percent in July to 8.6 percent (YoY) last August.

On Tuesday, Indonesian Rupiah dropped sharply to above 14,205 against the US dollar from prior day at 14,125, or down 0.11 percent. The Jakarta Composite Index (JCI) also fell 0.50 percent to 6,138 compared to Monday.

The analysts assessed that the weakening of local currency and the composite index was influenced by the domestic geopolitical sentiment related to demonstrations across Indonesia. The weakening of major indices also influenced by falling prices of the commodity sector and the stronger of American Dollar, the observers said.

On Wednesday, the JCI its expecting move in the range of 6,100 – 6,175 and the local currency still weaken with resistance lever 14,250 over the Greenback.

For today, the analysts recommended PT Smartfren Telecom Tbk (IDX: FREN), PT Puradelta Lestari Tbk (IDX: DMAS), PT Unilever Indonesia Tbk (IDX: UNVR), PT Astra International Tbk (IDX: ASII), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bumi Serpong Damai Tbk (IDX: BSDE), PT Surya Citra Media Tbk (IDX: SCMA), and PT Media Nusantara Citra Tbk (IDX: MNCN) to be watch.

US$1: Rp14,100

May you have a profitable day!

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