The week ahead sees around 500 American (US) companies report earnings, providing an initial insight into how the COVID-19 outbreak is hitting revenues and profits at some of the world’s largest firms - Photo: Xinhua

JAKARTA (TheInsiderStories) – Good Morning! The week ahead sees around 500 American (US) companies report earnings, providing an initial insight into how the COVID-19 outbreak is hitting revenues and profits at some of the world’s largest firms.

Some of these expectations will be steered by the economic data flow, which in recent weeks is hinting at a global downturn of greater initial ferocity than seen during the global financial crisis.

In that respect, flash Purchasing Manager Index (PMI) survey data will provide the first comprehensive picture of how some of the world’ major economies have fared in April. With business closures and social distancing measures having been stepped up in many countries in April, it is widely expected that the PMIs will have deteriorated further as we head into the second quarter.

In Indonesia, Investment Coordinating Board has agenda to announces the realization investment in the first quarter of 2020. Earlier, the chairman, Bahlil Lahadalia hinted, that the realization up 6 percent compared to prior quarter in 2019.

While, President Joko Widodo hold a limited Meeting on the report of the task force for COVID-19. Until Sunday, total positive case 6.575, death toll 582, and recovered 686.

In the United States (US), the flash PMIs and earnings reports are joined by jobless claims. In addition, University of Michigan consumer sentiment, home sales and durable goods orders data.

In Europe also sees the PMIs accompanied by sentiment surveys from the European Commission, which also includes the IFO survey for Germany, as well as the April Household Finance Index. Updated labour market numbers from the UK are also likely to show a spike in unemployment benefit claims.

In Asia, April trade numbers for Taiwan, Thailand and Japan will also garner attention to gauge the extent to which Asia’s exports have suffered, and maybe whether there are any signs of supply chains from China being restored.

South Korea’ first quarter GDP data are expected to show the economy slowing to an annual rate of 1.8 percent, down from 2.4 percent in the last quarter of 2019, according to IHS Markit estimates, as the COVID-19 pandemic hit consumer demand and caused supply chain disruptions.

Last week, Indonesian Rupiah rose sharply by 1.12 percent to the level of 15,465 a US Dollar, the best in the past month and the Jakarta Composite Index (JCI) closed up 3.44 percent to 4,634 compared to previous day. Some analysts rated, a number of events at the weekend will be the cornerstone of the index movement.

One of them is the attitude of US President Donald Trump, who accused China of deliberately spreading the COVID-19 and infecting hundreds of thousands of Americans. Whereas previously he praised Xi Jinping for his readiness to deal with the virus.

On the other hand, US Treasury Secretary Steve Mnuchin said that the White House and Congress had agreed to disburse additional funds to the Paycheck Protection Program for small businesses totaling US$349 billion. This anticipation was given after the bank previously provided loans to small businesses affected by the pandemic.

In Asia, the central bank of the Philippines cut its benchmark interest rate suddenly as an economic support for passing through a pandemic. The Bank reduced 50 basis points to 2.75 percent and also cut lending and deposit rates by same points. This is the lowest since 2016 ago.

In addition, Bank Reserves of India also did the same thing cutting interest rates and launching additional easing to maintain liquidity levels in the wider financial system outside the existing banking system. This makes liquidity support small and medium scale financial institutions and companies.

In the country, minister of finance, Sri Mulyani Indrawati revealed the potential reduction in tax revenues had begun to be seen in the first quarter of 2020. Until March 2020, personal income tax fell by  percent year on year. For today, they rated Rupiah could move in the range 15,400 -15,500 over the Greenback and the JCI between 4,531 – 4,740.

Some interesting stocks to look at for today are PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Kalbe Farma Tbk (IDX: KLBF),  PT Indah Kiat Pulp & Paper Tbk (INKP), PT Adaro Indonesia Tbk (IDX: ADRO), PT Bank Mandiri Tbk (IDX: BMRI), and PT Gudang Garam Tbk (IDX: GGRM).

Then, PT HM Sampoerna Tbk (IDX: HMSP), PT Jasa Marga Tbk (IDX: JSMR), PT AKR Corporindo Tbk (IDX: AKRA), PT Medco Energy International Tbk (IDX: MEDC), PT Perusahaan Gas Negara Tbk (IDX: PGAS), and PT Semen Indonesia Tbk (IDX: SMGR).

May you have a profitable Week!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia