JAKARTA (TheInsiderStories) - Good Morning! This week is the last week of 2020 and COVID-19 remains the major focus in markets. The rollout of vaccines has begun in many countries, supporting an upbeat demand outlook.
At the same time, supply chains continue to face disruptions that are hampering production and snarling logistics services. The question for the new year is how quickly will the supply-side of markets react to the rebuild in demand as vaccinations become more widespread.
Persistent bottlenecks will result in a burst in goods price inflation that carries beyond 2021. While, the investors await confirmation whether President Donald Trump has approved the aid stimulus package.
The risk of pending US stimulus dampened some of the optimism that pushed global stocks to a record this month. President Donald Trump has asked Congress to increase the stimulus to US$2,000 from $600 for each Americans. Voting is expected today to try and break the deadlock.
On the virus front, more restrictions are being put in place to fight the spread of a new, more contagious strain. Japan was among the latest to act, barring entry to most foreigners until late January.
In Europe, since yesterday the block has started the COVID-19 vaccine injunctions in a bid to slay the virus outbreak. While, Britain and Turkey are set to sign a free trade deal on Tuesday. The two countries will sign a deal that replicates the existing trading terms between Ankara and London.
In the country, Bank Indonesia predicts the current account deficit throughout 2020 will be below 1.5 percent of gross domestic product. The trade balance in November 2020 again posted a surplus $2.61 billion.
The central bank also predicts that the capital and financial account surplus will increase in line with the continued flow of foreign capital. In 2021, the current account deficit is estimating in the range 1.0 to 2.0 percent of gross domestic products (GDP).
End of last week, Indonesian Rupiah weakened by 0.04 percent to 4,200 per US Dollar and the Jakarta Composite Index (JCI) fell 0.24 percent to the level of 6,008.71 compared to the previous day. . The analysts rated, for this week, both instruments has possible to weakens due to long holidays.
The local currency is projected to stagnate due to the sentiment previously expected by market players, such as the discovery of the COVID-19 vaccine and the determination of the US stimulus that they have priced in.
This week, the Rupiah has the potential to move in the range of 14,100 - 14,350 against the Greenback. If there are unexpected news comes out in this week, the domestic currency has the opportunity to weaken even further. And, the JCI is in the range of 5,875 to 6,157.
Stocks to be watch for today are PT Astra International Tbk (IDX: ASII), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Central Asia Tbk (IDX: BBCA), PT Kalbe Farma Tbk (IDX: KBLF), PT Mayora Indah Tbk (IDX: MYOR), PT United Tractors Tbk (IDX: UNTR), and PT Telkom Indonesia Tbk (IDX: TLKM).
May you have a profitable Week!
Written by Linda Silaen, Please Read Our News to Get More information about Indonesia
