JAKARTA (TheInsiderStories) – Good Morning! Today, the People’s Bank of China will make a decision on its monetary policy after the country announced the economy has started to recover in the fourth quarter of 2020. On the same day, the board of governors of Bank Indonesia (BI) meeting began and will take decisions tomorrow.
The economists predicted that the central banks will maintain its policy rates. In Asia, Prime Minister of Malaysia Muhyiddin Yassin announced to distributes an additional stimulus measures worth RM15 billion (US$3.70 billion) to support the economy. Last week, the country declared a state of emergency to curb the spread of the outbreak.
In the United States (US), President-elect, Joe Biden, plans to reverse Donald Trump’ legacy with a flurry of immediate executive orders in his first days as the new leader of the country. The orders included rejoining the Paris Climate Accord, ending a ban on travelers from Muslim-majority countries, and mandating the use of face masks, both on federal property and for interstate travel, whether by road, air or rail.
He plans to quickly extend travel restrictions barring travel from Europe and Brazil soon after Trump lifted those requirements effective Jan. 26. On Monday, Trump signed an order lifting the restrictions he imposed early last year after winning support from coronavirus task force members and public health officials.
In Europe, Germany’ major party anointed a successor to Angela Merkel and Italy is teetering into a new political crisis. Armin Laschet is strong candidate to succeed Merkel at the weekend.
While, Italian bond yields edged higher as Prime Minister Giuseppe Conte continued his search for new allies to secure a majority in parliament. Former center-left, Prime Minister Matteo Renzi, pulled his small Italia Viva party out of the coalition last week.
Yesterday, Indonesian Rupiah weakened 0.35 percent to 14,070 levels against the US Dollar and the Jakarta Composite Index (JCI) strengthened 0.26 percent to 6389.83 compared to the previous day. Analysts believe that both movements will be influenced by the consolidation in financial markets, especially stocks.
This can be seen from the selling action carried out by foreign investors yesterday as the American Dollar was being sought after ahead of Biden’ inauguration. In the country, the formation of a government regulation related to sovereign wealth funds will be a positive driver for both, they adds.
With these various information, they expect the Rupiah will move in the range 14,000 – 14,040 over the Greenback and JCI between 6,300 – 6,440. Stocks to be watch for today are PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Astra International Tbk (IDX: ASII), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Mandiri Tbk (IDX: BMRI), and PT Bank Rakyat Indonesia Tbk (IDX: BBRI).
Then, PT Unilever Indonesia Tbk (IDX: UNVR), PT Semen Indonesia Tbk (IDX: SMGR), PT Jasa Marga Tbk (IDX: JSMR), PT Unilever Indonesia Tbk (IDX: UNVR), and PT Mayora Indah Tbk (IDX: MYOR).
May you have a profitable Day!
Written by Linda Silaen, Please Read Our News to Get More information about Indonesia