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Fresh Wind from Wall Street, JCI Can Rebound?

Jakarta, CNBC Indonesia – Indonesia’s financial markets tend to be mixed on Wednesday (15/6), where investors are still wait and see ahead of the release of the benchmark interest rate decision by the US central bank (Federal Reserve / The Fed).

On Wednesday (15/6), the Composite Stock Price Index (JCI) fell 0.61% to the position of 7,007.05, the JCI had tasted the green zone in early trading. However, it was only for a short time before it finally started to weaken again.

The trading value was recorded to have increased by Rp. 16.5 trillion, involving more than 30 billion shares, compared to Tuesday’s trading (14/6) which was only valued at Rp. 15.637 trillion, involving 25.143 billion shares.

Meanwhile, foreign investors recorded net sales (net sell) jumbo worth IDR 685 billion in the regular market. Even so, the value net sell This was still lower than trading on the previous day at Rp 743 billion.

The shares most released were PT Bank Central Asia Tbk. (BBCA) and PT Telkom Indonesia (Persero) Tbk. (TLKM) with net sales of Rp 231 billion and Rp 179 billion, respectively.

JCI, not the only index that was corrected yesterday. The majority of Asia-Pacific bourses also closed lower, where the index South Korea’s KOSPI closed down 1.83% at 2,447.38, the ASX 200 tumbled 1.27% to 6,601, and the Nikkei slipped 1.14% to 26,326.16. Followed by Singapore’s Straits Times index closed down 0.1% to 3,105.85.

In addition, the rupiah was again corrected against the United States (US) dollar. In fact, the rupiah had strengthened at the beginning of yesterday’s trading session, before finally reversing direction until it ended up weakening 0.31% to Rp. 14,740/US$ and became the weakest since October 5, 2020.

The weakening of the rupiah has been going on for three days in a row and has recorded a correction of 1.3%.

In the bond market, the price of government bonds or Government Securities (SBN) closed mixed yesterday, where SBN with a tenor of 1.10,15 and 25 years tended to be released by investors and marked by rising yields (yield) and lower prices.

On the other hand, SBN with tenors of 3, 5, 20, and 30 years were crowded with investors, marked by a decline in yield and the price is rising.

From within the country, some good news occurred in yesterday’s trading.

One of them, the Central Statistics Agency (BPS) announced that Indonesia’s trade balance was still in a surplus of US$ 2.9 billion. Thus, Indonesia’s trade balance has lasted for 25 consecutive months.

However, when compared to the trade balance as of April, the surplus was still lower than US$ 7.56 billion and also far from the market consensus compiled CNBC Indonesia of 13 institutions that expect a surplus as of May to reach US$ 3.57 billion.

Not only that, President Joko Widodo (Jokowi) has officially reshuffled the cabinet by inaugurating two ministers and three deputy ministers.

Jokowi’s target with a new figure in the cabinet is to prevent Indonesia from threatening food and energy crises. The presence of politicians is also expected to have a positive impact on political stability.

This, in fact, has not been able to boost the performance of the JCI and the rupiah. The market responds neutrally to government policies. Market sentiment is more dominated by news from external sources ahead of the decision on the benchmark interest rate by the US central bank (Federal Reserve/The Fed)

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