Jakarta, CNBC Indonesia – The national financial market moved mixed yesterday, where the stock market strengthened following the entry of foreign investors but the rupiah weakened following the regional trend. Today, release Gross Domestic Product (GDP) 2020 will be a decisive sentiment.
The Composite Stock Price Index (JCI) on Thursday (4/2/2021) closed up 29.5 points or 0.48% to 6,107.21, becoming one of the few exchanges that strengthened in the Asian region. The majority of Asian bourses closed lower amid a sell-off in technology shares.
The South Korean KOSPI Index led the decline with a correction of 1.35%, followed by the Japanese Nikkei which fell by 1.06%, Singapore’s STI fell 0.75%, Hong Kong’s Hang Seng fell 0.66%, and China’s Shanghai Composite depreciated 0.44% .
Data from the Indonesia Stock Exchange (BEI) shows that 205 stocks rose, 265 were depressed and 170 others were flat. However, the stock exchange transaction value was only Rp 15.32 trillion, far from the previous period in early January which could reach Rp 23 trillion.
Foreign investors are still rushing in with net purchases (net buy) IDR 495 billion in the regular market, indicating that they have more guts to enter high-risk assets because they believe that the economy will improve amid the pandemic.
Not surprisingly, the prices of government bonds or Government Securities (SBN) closed mixed with the majority weakened. The improvement in stock market volatility in global and domestic markets usually triggers a switch of funds from the debt securities market to the stock market.
Investors have started releasing SBN although several series are still being targeted. Yield (yield) SBN series FR0082 with 10 year tenor, which is the benchmark for national bonds, rose 1.9 basis points (bp) to 6.19%. That is, the price is again weakening because yield it is in the opposite direction of price.
However, some investors still left one foot in the bond market, seen from the decline in the yields of some SBNs, such as the FR0061 series which dropped 4.9 bp to 4.08%, the FR0039 series dropped 2.2 bp to 4.69%, and FR0067 decreased 2 bp to 7.26%.
The basis point calculation unit is equivalent to 1/100 of 1%.
However, the rupiah exchange rate against the US dollar (US) weakened in spot market trading, after strengthening 0.14% yesterday. US $ 1 is valued at Rp. 14,000 in the spot market. Rupiah has weakened 0.07% compared to yesterday’s closing.
Launching Refinitiv data, the rupiah opened trading stagnant at Rp.14,000 / US $, then strengthened 0.07% to Rp.13,990 / US $. However, unfortunately, the rupiah was not able to continue strengthening and turned down 0.21% to Rp 14,030 / US $.
The weakness occurred in all Asian currencies which also fell against the US dollar. As of 15:07 WIB, the South Korean won was the worst, weakening 0.4%. The US dollar index as of this afternoon strengthened 0.16% to 91.281.
Market players are still waiting for the release of data that will be the “gong” to determine their investment horizon in Indonesia, namely GDP as of December 2020.
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