Excited Global Stock Exchange, JCI Will Have a Happy Weekend?

Jakarta, CNBC Indonesia – The Indonesian stock market was not opened on Thursday (26/5) because it was a national holiday commemorating the Ascension of Jesus Christ amid strengthening global equity markets. However, the day before, the Composite Stock Price Index (JCI) ended trading on Wednesday (25/5) with a correction of 0.44% and closed at 6,883.504.

Last Wednesday, the JCI was knocked back from the psychological level of 6,900 even though it had strengthened in early trading. After that, however, the JCI tended to be depressed. In session II, JCI remained in the correction zone.

Foreigners net buy Rp 40.54 billion in the regular market. The shares of BBNI and UNVR were the most bought by foreigners with a net buy of Rp. 137 billion and Rp. 55 billion.

Meanwhile, BBRI and BUMI shares were the most sold by foreigners with a net sell of Rp 165 billion and Rp 34 billion, respectively.

In yesterday’s trading (26/5), Asian markets closed varied or, with the majority experiencing weakness, except for the Shanghai and Singapore indexes which were able to end the day in the green zone.

From the blue continent, all major indexes were compact closed in the green zone. The Stoxx 600 gained 0.78%, Britain’s FTSE stock index was up 0.56%, Germany’s DAX and France’s CAC indexes jumped 1.59% and 1.78% respectively.

Meanwhile, from other financial markets, on Wednesday (25/5) trading uFor the first time in the last 5 weeks, the rupiah was finally able to record consecutive gains against the United States (US) dollar. The announcement of the monetary policy of Bank Indonesia (BI) still maintains the performance of the rupiah, in addition, the US dollar also continues to experience correction.

According to Refinitiv data, the rupiah immediately strengthened 0.21% to Rp 14,625/US$ as soon as trading opened. Had turned down, but the rupiah finally managed to maintain its strengthening. At the close of trading the rupiah was at Rp 14,630/US$, strengthening 0.17% in the spot market.

Wednesday’s gains were the first since April 19.

The Rupiah is already seen to be able to record strengthening again given its movement in the non-deliverable forward (NDF) market which is stronger.

Successive gains occurred after BI announced the results of the Board of Governors’ Meeting (RDG) last Tuesday (24/5), although the benchmark interest rate has not been modified according to market expectations.

However, BI took other steps to maintain rupiah stability by accelerating the normalization of liquidity policy by gradually increasing the Statutory Reserves.

Earlier this year, BI planned to raise the Statutory Reserves in March (100 basis points), June (100 basis points) and September (50 basis points), for conventional commercial banks (BUK) to 6.5%.

And for Islamic commercial banks (BUS) in September the reserve requirement was 5%, with each increase of 50 basis points.

BI then speeds up and further upgrades GWM. For BUK, GWM which is currently 5% will rise to 6% in June, then 7.5% in July and 9% in September.

For BUS which is currently 4% rose to 4.5% in June, 6% in July and 7.5% in September.

The increase is estimated to absorb liquidity in the economy of Rp 110 trillion. The absorption of liquidity is expected to make the rupiah more stable.

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