Jakarta, CNBC Indonesia-The Composite Stock Price Index (JCI) closed collapsed in the first trading session this afternoon, Thursday (25/3/21). Opened up 0.05% to the level of 6,159.61 this morning, JCI closed down 0.94% to the level of 6,098.27 again leaving the psychological level of 6,100.
Today’s transaction value is IDR 5.5 trillion and foreign investors have observed a net sale of IDR 190 billion in the regular market.
Foreigners bought shares of PT Vale Indonesia Tbk (INCO) for IDR 18 billion and PT Telkom Indonesia Tbk (TLKM) for IDR 79 billion.
Meanwhile, the net selling was carried out by foreigners in the shares of PT Bank Central Asia Tbk (BBCA), which was sold for Rp. 153 billion and PT Astra International Tbk (ASII) which was sold for Rp. 24 billion.
Investors are watching the development of the corona virus pandemic, especially in Europe. It looks like the Blue Continent’s economic prospects will not be as bright as previously thought.
Phillip Lane, Chief Economist at the European Union’s Central Bank (ECB), said that the European economy is expected to grow 4 percent this year. It’s factored inlockdown.
However, Lane warns that the second quarter of 2021 is likely to be quite tough. “Now we are about to enter the second quarter, which looks like it will take a long time,” he told CNBC International.
Well, at the beginning of the year many declared that 2021 would be a year of resurrection, a year of glory. However it turned out that the situation was like this. The pandemic which is said to be under control due to vaccinations is still haunting.
Furthermore, the yield (yield) US government bonds moved down again. At 04:15 WIB,yieldthe 10-year tenor stood at 1.6137%, down 2.4 basis points (bps).
Lately, the increaseyieldUS Treasury Bonds become a scourge for global financial markets. IncreaseyieldPresident Joseph ‘Joe’ Biden’s government notes make other instruments unattractive.
Last weekend,yieldUS Treasury Bonds were above 1.7%. Not far fromdividend yieldthe S&P 500 index which is in the range of 1.9%. That is, secure instruments such as bonds provide competitive returns with risky assets.
But with the recent US economic data lackingtough, perhaps inflation expectations are easing. It seems that the demand in the superpowers has not fully recovered, so it is not yet strong enough to push up the inflation rate.
The easing of inflation expectations was later reflected in a declineyieldbond. Hopefully a decreaseyieldUS government bonds encourage investors to hunt down risk assets in developing countries. However, with the gloomy outlook for the world economy due to the lockdown in Europe, I don’t know if this can happen.
CNBC INDONESIA RESEARCH TEAM
(trp/trp)
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