Jakarta, CNBC Indonesia – Indonesian financial markets closed varied in yesterday’s trading. Composite Stock Price Index (JCI) weakened, however rupiah exchange rate even strengthened.
Yesterday, JCI ended with a correction of 0.77%. The JCI has been below 6,300 and touched its lowest point since March 9, 2021. Foreign investors recorded a net sale of Rp 192.18 billion in the regular market.
Market players, especially foreigners, and foreign players, are likely to stay away from risky assets in developing countries, including Indonesia. This can be seen from the JCI which tends to weaken, where in the last month there was a correction of 0.22% point-to-point.
Not only in Indonesia, investors are also leaving the stock market in various countries, even the United States (US). This is because the owners of capital are now focusing on the government bond market in Uncle Sam’s country.
Since the fourth week of January 2021, the yield (yield) US President Joseph “Joe ‘Biden’s government debt securities are moving upwards. Throughout 2021, yield US Treasury Bonds with a tenor of 10 years have risen 77 basis points (bps).
Here we are talking about US government bonds, a highly secure asset that is non-payment (default). It’s safe, now the asset is profitable yield which is getting higher. As a result, investors have continued to shift their focus to the US government bond market.
Although the JCI was corrected, the rupiah did not. Against the US dollar, the country’s currency edged up 0.07% at the close of spot market trading. The US dollar was successfully pushed back to below Rp. 14,400.
Understandably, the rupiah has recently weakened quite sharply. In the past month, the rupiah has weakened 2.13% simultaneously point-to-point in the face of the US dollar. This gives the rupiah room to appreciate, because Mother Earth’s currency is too ‘cheap’.
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