Dear Investor, Today’s ‘War’ Commander: Global Sentiment!

Jakarta, CNBC Indonesia – Indonesia’s stock market and foreign exchange market on Wednesday (05/08/2020) strengthened, but the bond market weakened after the release of domestic economic data. Today, global sentiment will be commander in chief.

The Composite Stock Price Index (CSPI) closes trading with a gain, since since the morning the flip-flop has been fluctuating. The national stock index index gained 1.03% to 5,127.05.

Foreign investors who booked a net purchase in the morning (net buy) Rp 12 billion, in fact reverse direction print net sales (net sell) valued at Rp 360 billion in the regular market.

This indicates that they chose to flee their funds after the release of the Gross Domestic Product (GDP) by the Central Statistics Agency (BPS) showed a contraction of 5.32% in the second quarter-2020.

Technically, Indonesia’s GDP has experienced a recession after contracting three times in a row (quarterly), namely -1.74% (quarter IV-2019), -2.41% (quarter I-2020), and -4.19 % (quarter II-2020).

But on an annual basis, the first contraction of -5.32% was recorded, because in the first quarter of 2020 the country still recorded economic growth of 2.97%.

In general, the exchange transaction value reached Rp 9.3 trillion. As many as 241 shares rose, 173 weakened, and 161 others were flat. The most heavily traded shares today are PT HM Sampoerna Tbk (HMSP) with a net sale of Rp 58 billion and PT Bank Mandiri Tbk (BMRI) which listed net sell amounting to Rp 111 billion.

JCI rally occurred amid the varied movements of Asian markets. The Hang Seng Index in Hong Kong rose 0.62%, the Nikkei in Japan depreciated 0.26%, while the STI Index in Singapore grew 0.8%.

On the forex market, the exchange rate of the rupiah against the United States of America (US) returned to the green zone in spot market trading after rising 0.07% yesterday. US $ 1 is priced at Rp 14,520 / US $ on the spot market, up 0.21%.

However, the price of government bonds in the secondary market weakened. This is reflected in the decline in yield or yields on a number of reference series.

Revintif data shows that the yield on Indonesia’s 10-year tenor is at 6.83%, an increase compared to Tuesday’s position of 6.81%. Price movements and bond yields are contradictory. The increase in bond prices makes the yield position down, and vice versa.

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