Corona cases are still high, this is the effect on the JCI until the end of October 2020

ILLUSTRATION. The high number of corona cases has the potential to suppress the Composite Stock Price Index (JCI).

Reporter: Kenia Intan | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. The number of corona cases in Indonesia continues to increase entering its seventh month after being announced on March 2, 2020. The total Covid-19 cases in Indonesia reached 357,762 cases as of Saturday (17/10). The number increased by 4,301 cases compared to the previous day. The high number of corona cases has the potential to suppress the Composite Stock Price Index (JCI).

As for the total recorded cases of corona, 281,592 of them have been declared cured. Meanwhile, as many as 12,431 patients were declared dead. Thus, the number of active cases handled reached 63,739 people today.

Quoting data from Worldometers, Indonesia is the country with the highest total of corona cases in Southeast Asia. In fact, it exceeds the Philippines which recorded 354,338 cases.

Director of Anugerah Mega Investama Hans Kwee observed that the growth of corona cases in Indonesia and globally has the potential to suppress the JCI movement until the end of October 2020.

Also Read: JCI has the potential to strengthen next week, see the driving sentiment

Globally, the addition of corona cases in several regions of Europe and America could slow down economic activity. Moreover, territorial restrictions or lockdown re-applied in several regions in Europe to prevent the addition of corona patients. Despite lockdown which was implemented not as strictly as during the first wave of corona, Hans Kwee argued that it still had an impact on economic conditions.

Another ballast sentiment is the development of a corona vaccine, which is taking longer than expected. This reflects that the United States regulators stopped the final stage trial of ACTIV-3, which is a treatment for the formation of corona virus antibodies. The delay was carried out for safety reasons.

Previously, Johnson & Johnson also announced that it was temporarily halting trials of the final stage of the corona virus vaccine candidate. The discontinuation was carried out because there were reports of side effects that could not be explained medically.

According to Hans Kwee, these negative sentiments will dominate the stock exchange until the end of October 2020. In fact, the stock exchange actually has positive sentiments such as the ratification of the Omnibus Law on Cipta Kerja, the commitment of the Indonesian government to seek vaccination in November, and the financial statements of issuers in the third quarter of 2020.

Regarding the third quarter of 2020 financial reports, Hans Kwee estimates that the results will be better than the previous quarter. This improvement was supported by large-scale social restrictions (PSBB) which had entered a transitional period in the first few weeks of semester II 2020.

“The financial reports tend to be good, but there are no significant surprises,” said Hans Kwee when contacted by Kontan.co.id, Saturday (17/10). Although the financial report has the potential to increase, this has not been able to become a positive sentiment for the JCI movement.

He further explained that in general Indonesia’s economic data had also begun to improve. It’s just that, the handling of this pandemic is indeed the main weighting sentiment for the JCI.

Also Read: Intips of foreign-traded stocks when IHSG squeezes Friday (16/10)

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Reporter: Kenia Intan
Editor: Khomarul Hidayat

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