JAKARTA (TheInsiderStories) – Good Morning! The United States (US) treasury department reported budget deficit in October rose 111 percent to US$284 billion from a year ago stood at $134 billion. Prior to the COVID-19 pandemic, the US was on track for a $1 trillion deficit in fiscal 2021, said the treasury office.
And, labor department announced the consumer prices unchanged in October followed a 0.2 percent in September, as moderate gains in the cost of food were offset by cheaper gasoline amid slack in the economy. In annual basis, the CPI climbed 1.2 percent after increasing 1.4 percent in September.
In Asia, Prime Minister of Japan, Yoshihide Suga, said the country is not in a situation that requires a state of emergency over the COVID-19 outbreak. He also said the government’ initiative to boost domestic tourism with subsidies also did not need to be revised. On Thursday, the virus infections in Japan reached the highest-ever, 1,634 cases.
In ASEAN Leaders Summit, Indonesian President Joko Widodo pushed the members to open travel bubble in the first quarter of 2021 to rejuvenate the country’ tourism sector that has been decimate by pandemic. Currently, the country has a travel corridor agreement with Singapore, allowing eligible travelers to make business or official trips by both citizens.
On Thursday, Indonesian Rupiah fell 0.6 percent to 14,170 per US Dollar and the Jakarta Composite Index (JCI) slightly corrected by 0.9 percent to 5.458 compared to the previous day. In yesterday’ trading, there was a high selling volume.
According to analysts, the weakening of the two instruments was related to the development of the COVID-19 virus, after the increase in positive cases in several developed countries, such as the US and the European region. Recorded more than 60,000 patients in the US being treated for the virus, and a record high since April.
The Governor of Bank Indonesia, Perry Warjiyo, stated after being depressed to the level of 16,575 versus the Greenback, now Rupiah has strengthened 17.8 percent until Nov. 9. The strengthening is also influenced by the political stability that occurred in the US after the presidential election.
He assessed that the local currency still has the potential to strengthen, supported by controlled inflation, a low current account deficit, high attractiveness of domestic financial assets, and a declining risk premium for Indonesia.
Based on various information, the analysts sees the JCI is expected to move between 5,390 – 5,520 and Rupiah between 14,125 – 14,275. Stocks that can be watched for today are PT HM Sampoerna Tbk (IDX: HMSP), PT Indocement Tunggal Perkasa Tbk (IDX: INTP), PT Jasa Marga Tbk (IDX: JSMR), PT Sarana Menara Nusantara Tbk (TOWR), PT Tower Bersama Infrastructure Tbk (TBIG), PT Surya Semesta Internusa Tbk (SSIA), and PT Aneka Tambang Tbk (ANTM).
May you have a profitable Day!
Written by Linda Silaen, Please Read Our News to Get More information about Indonesia