Good News US Stimulus, JCI Will Be Mighty?

Jakarta, CNBC Indonesia – Indonesia’s financial market closed again in various ways on Tuesday (20/10/2020) yesterday. The rupiah exchange rate and government bond prices both strengthened, but the Jakarta Composite Index (IHSG) closed lower.

Yesterday, IHSG closed down 0.52% at the level of 5.099.84, after the previous day, JCI closed higher.

Asian stocks closed in various ways on Tuesday (20/10/2020) yesterday. It was recorded that 5 stock indexes fell and 6 stock indexes rose.

Meanwhile, the rupiah exchange rate against the United States (US) dollar closed higher, although throughout the day before yesterday, the rupiah was depreciating. Not only strengthened, the rupiah also won the alias of the currency with the best performance in Asia.

The majority, Asian currencies were not strong against the US dollar yesterday, only 5 of 11 Asian currencies were strong against the US dollar, including the rupiah.

Then the price of government bonds or state securities (SBN) in trading yesterday the majority closed strongly, marked by a return on revenue (yield) which went down, except SBN short term 1 year and 3 years which actually experienced price weakening and rising yield.

Domestic financial markets were affected by negative sentiment related to the spike in cases of the corona virus (Covid-19) in Europe.

Reuters reported that the daily number of infections reached its highest level in Europe on Monday. Investors are also monitoring political developments in the US that will determine the deadline for the fiscal stimulus agreement.

Previously, DPR Speaker Nancy Pelosi said that she would continue to push for the stimulus to be achieved before the election and this Tuesday is the deadline.

Pelosi and Finance Minister Steve Mnuchin “continued to narrow their differences” in conversations on Monday and Pelosi hoped that on Tuesday there would be “clarity” about whether stimulus was possible before the presidential election on November 3, 2020.

“The news of the back-and-forth stimulus exacerbated by the worsening trend of coronavirus cases and the uncertainty ahead of the election certainly worries the market,” said Mona Mahajan, US investment strategist, Allianz Global Investors, New York.

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