Jakarta, CNBC Indonesia – Indonesia’s financial markets tend to be mixed this week, with the Jakarta Composite Index (JCI) seen correcting, while the rupiah has seen a slight strengthening.
Within a week, the JCI corrected 0.77% on a point-to-point. In the previous week, the JCI managed to rise 1.75%. Meanwhile, on Friday (12/17/2021) trading this weekend, the JCI only rose 0.11% to a level of 6,601.93.
The total volume of stock transactions this week was 117.01 million units. It’s quieter than last week’s 128.29 million units.
Meanwhile, transaction volume also decreased to 6.55 million times from 6.61 million times. The transaction value automatically decreased to Rp 62.62 trillion from last week’s Rp 75.15 trillion.
On the stock market, foreign investors posted net sales of Rp 2.12 trillion. Whereas last week there was a net purchase of Rp 4.12 trillion.
However, in the currency market, the rupiah was observed to have strengthened slightly. The rupiah strengthened 0.03% against the United States (US) dollar this week. The rupiah also strengthened for two consecutive weeks, because last week it recorded an appreciation of 0.17%.
Last Friday, US$1 was equivalent to Rp. 14,365 at the close of the spot market trading. Rupiah weakened 0.17% from the previous day.
The JCI and the rupiah were affected by the entry of the Omicron variant of the corona virus (Covid-19) into Indonesia last Thursday. This too This was conveyed by the Minister of Health (Menkes), Budi Gunadi Sadikin (BGS) in his press conference.
On that occasion, BGS, Budi Gunadi Sadikin’s nickname, revealed that the Ministry of Health had detected the Covid-19 variant of Omicron in the country.
“Last night, the Ministry of Health detected a patient with the initials N, who was confirmed as Omicron on December 15,” he said.
According to BGS, the data has also been confirmed with GISAID. Then GIASID also confirmed data sequencing right is Omicron.
Omicron is the Covid-19 variant that is considered the most contagious compared to other variants, including the Delta variant.
Even though it is said to only cause mild symptoms, if the spread becomes wider, it is feared that the Implementation of Community Activity Restrictions (PPKM) will be tightened again, and make the economy slow down again.
Apart from Omicron, the JCI and the rupiah were also weighed down by news from the British central bank (Bank of England/BoE) that it was raising interest rates on Thursday evening, Indonesian time.
The BoE raised its benchmark interest rate from 0.1% to 0.25%. This is also the first increase among developed country central banks since the pandemic era amid the country’s soaring inflation.
The trigger for the change in monetary policy to become tighter occurred after UK inflation as of November touched a 10-year high of 5.1% or higher than the BoE’s target of 2%, and also higher than October’s 4.2% position.
On the other hand, the economy is expected to remain safe, with employment figures where as many as 257,000 workers were absorbed in the UK economy as of November.
Whereas before, the market (in the poll Reuters) expects that the benchmark interest rate will be held at 0.1% level following the outbreak of the Omicron case.
Even though the BoE raised its benchmark interest rate, the European Central Bank (ECB) announced that it would maintain its benchmark interest rate at 0%.
The ECB is in line with the Fed, where they will cut bond purchases and they have also pledged to continue monetary policy support through 2022.
So what sentiment will color the global and domestic markets next week?
Check out next week’s sentiment on the next page >>>
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