JAKARTA (TheInsiderStories) – Good Morning! After a week of turmoil in global markets, triggered by the oil price slump and increasing use of containment measures amid the escalating spread of the coronavirus diseases, investors will be keenly anticipating stimulus policy action from both central banks and governments.
Last week, the European Central Bank rolling out greater monetary support and United States (US) Federal Reserves cut interest rates by 100 basis points on Sunday to a target range of 0 to 0.25 percent. Its also said it would expand its balance sheet by at least US$700 billion in coming weeks. In the same week, democratic primary voting will continue in five states.
This week, markets will closely monitor the European Union (EU) meeting with EU finance ministers convening at a time of rising recession risks across a number of block economies. With France pressing for an EU-wide fiscal spending plan, expectations for a coordinated policy response to the economic impact of COVID-19 are widespread.
Earlier, The European Commission forecasting the effects of the virus could push the EU into a recession. To limit the effects of the spread of the COVID-19 virus, Germany, Italy, Spain, Denmark, the Czech Republic and Poland has lockdown their countries. EU leaders agreed to pump in 1.5 percent of the bloc’ GDP, or EUR200 billion into the economy to prevent it.
In Asia, monetary policy decisions will come from Japan, Indonesia, Philippines and Taiwan, with expectations of policy easing from most of them. With Caixin PMI surveys signaling steep fall in business activity, analysts will scrutinize February updates to official data, including industrial output, fixed asset investment, retail sales and credit data, to assess the overall health of the Chinese economy.
Taiwan’ export orders and Singapore’s non-oil domestic exports will be assessed for the extent to which disrupted supply chains have damaged export performance. Today, Statistic Indonesia will reported the export import data for February. Last month the country experienced the trade deficit in January worth of $870 million.
President Joko Widodo urged the society to stay at home and do social distancing to avoid the coronavirus outbreak. The decision has been made after transportation minister Budi Karya Sumadi tests positive for coronavirus and the number of the victim jumped to 117 positive cases in the archipelago.
The president itself and the minister run the COVID-19 test after Sumadi was infected. The country also confirmed 21 new positive cases, bringing the total number to 117 as of yesterday. The number of deaths stands at five.
Last Friday, Indonesian Rupiah weakened 1.76 percent to 14,778 per US Dollar. Meanwhile, the Jakarta Composite Index (JCI) rose 0.24 percent to 4,907.57 compared to the previous day after the Indonesia Stock Exchange (IDX) had suspended the trading at 09.15 a.m Eastern Time.
The stock index turned up one hour before trading closed after the buyback shares action by the issuers and the announcement of second stimulus package by the government. This week, the analysts rated investor confidence would return after the Fed injected liquidity into the American banking system and cut the rate.
Based on the previous data this week the Rupiah its expecting move between 14,550 to 15,050 against the Greenback. While, the JCI in the range 4,639 to 5,040.
The stocks to be watch for today are PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Bank Panin Tbk (IDX: PNBN), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Astra International Tbk (IDX: ASII), PT Astra Agro Lestari Tbk (IDX: AALI), PT Medco Energy International Tbk (IDX: MEDC), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Adaro Energy Tbk (IDX: ADRO), and PT PP Tbk (IDX: PTPP).
May you have a profitable Week!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia