Jakarta, CNBC Indonesia – The Composite Stock Price Index (JCI) plunged more than 2% at the close of trading today, Friday (11/26/2021), amid a large sell-off by foreign investors and There are concerns that the pandemic will worsen amid the emergence of the latest variant of the Covid-19 virus that can counteract the vaccine.
According to data from the Indonesia Stock Exchange (IDX), the benchmark national stock index closed down 2.06%, leaving the psychological level of 6,600, to 6,561.55.
Only 99 stocks rose, 476 stocks fell, and 98 stocks were flat. The transaction value reached Rp 16.28 trillion and the trading volume was 28.28 billion.
Foreign investors flocked out of the domestic market with a net selling record of Rp 196.08 billion in the regular market and Rp 64.77 billion in the negotiating market and cash market.
Shares of bank PT Bank Central Asia Tbk (BBCA) became the most sold by foreigners with a net selling value of Rp 322.2 billion, causing the share price to drop 2.02%. Similarly, e-commerce shares of PT Bukalapak.com Tbk (BUKA) were also sold by foreigners for Rp. 109.4 billion and made its shares plunge 6.45%.
The trio of state-owned banks’ shares were also hit by foreign selling reaching Rp 63.8 billion. PT Bank Mandiri Tbk (BMRI) shares fell 3.40% with a net selling value of Rp 81.0 billion.
Then, the shares of PT Bank Negara Indonesia Tbk (BBNI) also slumped 4.18% amid selling off by foreigners of Rp 78.1 billion. For three dollars, shares of PT Bank Rakyat Indonesia Tbk (BBRI) were also sold by foreigners to reach Rp 70.3 billion and made BBRI’s shares fall by 1.42%.
Red Sea Asian Stocks & Wall Street Futures
The JCI correction occurred in the midst of the collapse of the majority of bourses in the Asian region. This afternoon, Japan’s Nikkei Index led the way with a 2.53% correction, while Hong Kong’s Hang Seng dropped 2.60%, South Korea’s KOSPI dropped 1.47%, Singapore’s Strait Times index fell 2.02%. None of the major markets in Asia strengthened.
Futures contract (futures) the stock market index of the United States (US) was also depressed as the news the emergence of the latest variant of the corona virus (Covid-19) with a spike in mutations, namely B.1.1.529. Dow Jones futures are down 2.09% this afternoon, at 3:04 pm EST. Nasdaq futures were also down 0.93% and S&P 500 futures shed 1.70%.
The new Covid-19 variant has been detected in South Africa and has mutated to become more resistant to antibodies, thereby reducing the effectiveness of the vaccine and simultaneously being more infectious.
The World Health Organization (WHO) said it was requesting an emergency meeting to monitor the variant. This is important amid the increasing number of Covid-19 cases in Europe and the world which is entering the year-end holiday season.
In addition, other negative sentiments also came from the plan to reduce the value of the asset purchase program (quantitative easing/QE) or tapering by the central bank of the United States (US) or known as the Federal Reserve (The Fed).
The indications of the Fed to normalize its monetary policy more quickly strengthened this week.
Since last week, several elite officials of The Fed have voiced to speed up the pace tapering which started this month and raised interest rates early to dampen rising inflation which is at its highest level in 30 years.
Market participants now see an 80% probability that the Fed will raise interest rates in June 2022, faster than the previous semester II-2022.
This can be seen from the CME Group’s FedWatch tool, where there is a 19.5% probability that the Fed will maintain interest rates at 0% – 0.25%. While the probability of raising interest rates is more than 80%, which is divided into several basis points of increase.
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