Good News Appears from Uncle Sam, JCI continues to be fast, isn’t it?

Jakarta, CNBC Indonesia – The condition of the country’s financial market was closed yesterday. The price of stocks and government bonds strengthened while the rupiah exchange rate weakened.

The national stock exchange successfully finished in the green zone with a significant strengthening on Wednesday (6/10/2021). The Composite Stock Price Index (JCI) rose 2.06% to a level of 6,417.32 by the end of the second trading session following a rebound in Uncle Sam’s stock exchange.

The JCI’s appreciation was also supported by the strengthening of big cap bank stocks and coal issuers in the midst of continuing increases in global reference prices. Yesterday, coal touched US$ 280/ton.

While the yield on US government bonds tends to strengthen, the yield on Indonesian government bonds actually weakens. This means that the price of these low-risk fixed income instruments has increased.

Launch data from Refinitiv, yield 1-year SBN strengthened 0.7 basis points (bp) to 3.251% and yield SBN fell 3 years up 0.2 bp to the level of 3.872%. Meanwhile, yield SBN with a tenor of 20 years tends to stagnate at the level of 7.098% and the yield of SBN 10 years as a reference also decreases by 1.2 bps to 6.31%.

While stocks and government bonds strengthened, the rupiah exchange rate actually weakened after a day of trading higher against the greenback. However, the rupiah correction tends to be very thin.

The Garuda currency ended up depreciating 0.01% to Rp 14,250/US$ against the US dollar in the spot market. The minimal correction in the rupiah is still helped by the existence of inflow foreign funds to the domestic financial market.

Yesterday a foreigner recorded net buy in all markets reached more than Rp 3.4 trillion. Overall, the performance of the domestic financial market is still relatively good.

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