JAKARTA (TheInsiderStories) – Good Morning! This week, National Investment Coordinating Board has agenda to release the investment realization in the second quarter of 2020. In the first quarter of 2020, Indonesia posted Rp210.7 trillion (US$14.73 billion) of investment, up 8.0 percent from last year and 1.2 percent in quarterly basis with worth of Rp208.6 trillion.
But, the realization of Foreign Direct Investment dropped 9.2 percent to Rp98.3 trillion from last year and quarterly down 7 percent from 4Q of 2019. In contrary, Domestic Direct Investment up 19.3 percent to Rp112.7 trillion in annual basis and quarter on quarter jumped 9.5 percent
Globally, flash PMI updates for the United States (US), Europe and Japan in the coming week will be scrutinized eagerly for further recovery signs at the start of the third quarter, though markets will also parse the survey data to gauge the degree to which the recent backtrack of lockdown measures in some countries affect their recovery paths.
Global business outlook surveys, compiled by IHS Markit, showed that sentiment regarding business activity in the year ahead fell, with profits set to be hit and hiring and investment projected to be stagnant over the coming year.
While June PMI surveys hinted at a return of global business activity, adding to signs of a sharp rebound since the height of the COVID-19 lockdowns in April, underlying demand conditions remained frustratingly subdued, with global exports still acting as a key drag on the global economy.
The current demand environment also reflects emergency stimulus measures, with fiscal support and employment support schemes temporarily buttressing consumption and job retention.
In the US, with the June PMI having shown signs of business activity nearing stabilization, focus now shifts to the July flash survey data to gauge if a return to growth for the economy in the third quarter could be on the cards. Other US data include jobless claims, home sales and regional manufacturing surveys.
In Europe, the flash PMI data for the Eurozone, Germany, France, and the United Kingdom (UK) are accompanied by national sentiment surveys in Germany, France and Italy as well as retail sales and household finance figures in the UK.
In Asia Pacific, flash PMI data are supplemented by key official releases, including South Korea GDP updates, trade figures in Taiwan and Thailand, alongside employment data for Singapore, Hong Kong SAR, and Taiwan. Central bank documents in Australia and Japan will be keenly watched for policymakers’ latest assessments of the economic outlook.
Last week Indonesian Rupiah corrected 0.53 percent to the level of Rp.14,703 per US dollar. While, the Jakarta Composite Index (JCI) decreased by 0.37 percent to the level of 5,079.58 compared to the previous day.
Analysts explained that fears of worsening US and Chinese relations as well as the problem of increasing transmission of COVID-19 give a negative sentiments for their second move during last week.
Until Sunday, total positive cases of COVID-19 in Indonesia have passed China where positive cases increased by 1,639 people bring a total 86,521 cases. Analysts say the development of COVID-19 will remain a concern of the market.
The added, concerns over worsening relations between the US and China will put pressure on the movements of the Rupiah and JCI. Today they expect the local currency its expecting move between 14,450 – 14,900 and the stock index in the range 5,020-5,100.
Stocks that can be considered today are PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank CIMB Niaga Tbk (IDX: BNGA), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Ban Panin Tbk (IDX: PNBN), PT Ramaya Lestari Sentosa Tbk (IDX: RALS), PT Summarecon Agung Tbk (IDX: SMRA), PT Barito Pacific Tbk (IDX: BRPT), and PT Ace Hardware Tbk (IDX: ACES).
May you have a profitable Week!
Written by Linda Silaen and TIS Intelligence Team. Please Read Our News to Get More information about Indonesia