Investors bullish about the global economic recovery and look ahead to a busy week for United States (US) economic data, particularly for the ISM manufacturing survey and April payrolls - Photo by DBS Office

JAKARTA (TheInsiderStories) – Good Morning! Investors bullish about the global economic recovery and look ahead to a busy week for United States (US) economic data, particularly for the ISM manufacturing survey and April payrolls. Forecasts that 978,000 jobs were created in April as consumers spent their stimulus money and the economy opened up more.

In Asia, the Reserve Bank of Australia will announce its interest rate decision and trade data for March today. While, Investors are closely monitoring the COVID-19 situation in India which is showing few signs of slowing down. Last week, the World Health Organization said one in three cases of the new coronavirus globally were reported in India.

Then, South Korea’ inflation rose to 2.3 percent in April, the fastest pace since 2017. The number increased from the 1.5 percent gain in March driven by rising commodity and energy prices amid an economic recovery. Last month, Bank of Korea governor, Lee Ju-yeol, said that inflation will likely fluctuate around 2 percent  in the current quarter before moderating.

In Indonesia, The government has again extended the limiting micro-scale community activities for the next two weeks starting May 4 to 17, 2021. The provincial coverage has also been expanded to reach 30 provinces. The task force reported, the average daily confirmed cases in April were around 5,222 cases per day with active cases at 107 thousand.

The government also reported that the realization of national economic recovery program until April 30 amounted to Rp155.6 trillion (US$10.80 billion) or 22.3 percent of the ceiling of Rp699.43 trillion. In details, the realization of the health program of Rp21.15 trillion, social protection of Rp49.07 trillion, and priority programs has reached Rp18.98 trillion.

Yesterday, Indonesian Rupiah weakened 0.03 percent to 14,450 against the American Dollar and the Jakarta Composite Index (JCI) dropped 0.72 percent to 5,952.60 compared to the previous day. The analysts rated that the two of them will still fluctuate by considering the release of inflation data which shows an increase.

Statistics bureau has reported 0.13 percent inflation in April, higher than March’ 0.08 percent. On an annual basis, inflation was recorded at 1.42 percent, higher than 1.37 percent in March 2020. The market regretted that Indonesia’s core inflation per April was 1.18 percent, lower than the March inflation of 1.21 percent.

Meanwhile, purchasing managers’ index data showed signs of higher expansion from the previous month. In addition, the government estimation that economic growth performance in the first quarter of 2021 have the potential to contract, is also a giving a negative sentiment to the financial market.

Globally, the increasing number of COVID-19 cases is also affecting the movements of the two. Its estimated that trade is still quiet during the month of Ramadan until the Eid al-Fitr holiday this month. With this information, they predict that the Rupiah will move in the range of 14,430 – 14,495 compared to the Greenback and JCI between 5,880 – 6,020.

Stocks that can be considered are PT Telkom Indonesia Tbk (IDX: TLKM), PT Adaro Energy Tbk (IDX: ADRO), PT Astra Agro Lestari Tbk (IDX: AALI), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Mandiri Tbk (IDX: BMRI), PT Aneka Tambang Tbk (IDX: ANTM), and PT Chandra Asri Petrochemical Tbk (IDX: TPIA).

May you have a profitable Day!

Written by Linda Silaen and Editorial Team, Please Read Our News to Get More information about Indonesia