JAKARTA (TheInsiderStories) - Good Morning! Successful rollouts of COVID-19 vaccines in many countries are raising hopes of further recovery in economic activities around the globe. The latest, World Health Organization has issued an emergency use permit for the vaccine produced by AstraZeneca Plc., to accelerate vaccine programs in developing countries.
There are two versions of the AstraZeneca vaccine produced by South Korea’ SK Bioscience Co., and the Serum Institute of India. The agency said the permission is required to ensure the safety and efficacy of vaccines via the COVAX line.
In United States (US), President Joe Biden is pushing ahead with his plan to pump an extra US$1.9 trillion in stimulus into the economy. While, the latest jobs data hints a struggling labor market and aid packages can’t arrive soon enough for some. Simultaneously Investors await the minutes from the Federal Reserve January meeting, due to be published on Wednesday
In Asia, South Korean Prime Minister Chung Sye-kyun, said he had secured an agreement to purchase 23 million vaccines, most comes from Pfizer. With a population of 52 million people, the country has received sufficient doses for 56 million people from COVAX, Pfizer, Moderna, AstraZeneca and Johnson & Johnson. The country will begin the first phase of vaccination on Feb. 26.
In Indonesia, President Joko Widodo targeting the “Merah Putih” vaccine production to start at the end of 2021 and continues to seek the COVID-19 vaccine from other countries. Furthermore, the trade ministry wants the ratification of the Regional Comprehensive Economic Partnership negotiations to be completed in the first semester of 2021.
The free trade deal opens an opportunities to increase exports of value-added products from the country. The export values could reached $26 trillion when referring to the total GDP of the 15 countries or 28 percent of the world trade values in 2019.
From the commodity market, oil prices soared to a 13-month high due to a severe snow storm in the US and on hopes of further demand recovery. Prices have rallied over recent weeks on tightening supplies, largely due to production cuts from the Organization of the Petroleum Exporting Countries and allied producers.
On Monday, Brent crude oil was up 1.5 percent to $63.36 a barrel after hitting a session peak of $63.76, the highest since Jan. 22 last year. While, West Texas Intermediate crude futures gained 1.5 percent to $60.33, also the highest since Jan. 8, 2020.
Earlier, Russian deputy prime minister, Alexander Novak, noted that the global oil market is on a recovery path and the oil price this year could average $45 - $60 a barrel. He also seen low volatility in the past few months and the prices are in line with the market situation.
Yesterday, Indonesian Rupiah closed 0.45 percent to 13,910 per US Dollar and the Jakarta Composite Index (JCI) rose 0.77 percent to 6,270 compared to the previous day. The analysts assessed that the movement of both cannot be separated from the poor performance of the US economic data.
The number of claims for unemployment benefits in the week ending Feb. 6 was recorded at 793,000 claims. Domestically, the trade surplus data has also served as a sentiment towards the Indonesian financial market.
The supporting factors are still driven by the consolidation of the American Dollar and various government incentives like the incentives and relaxation of vehicle and housing down payments. With this information, they assess that the Rupiah will move sideways in the range of 13,900 to - 14,000 against the Greenback and the JCI between 5,971 - 6,330
Stocks that can be seen today are PT Astra International Tbk (IDX: ASII), PT Aneka Tambang Tbk (IDX: ANTM), PT Semen Indonesia Tbk (IDX: SMGR), PT Tower Bersama Infrastructure Tbk (IDX: TBIG), PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Central Asia Tbk (IDX: BBCA), PT Medco Energi Internasional Tbk (IDX: MEDC), and PT AKR Corporindo Tbk (IDX: AKRA ).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia
