Jakarta, CNBC Indonesia – The Composite Stock Price Index (IHSG) closed lower in the first trading session Tuesday (15/9/2020), following a contraction in imports that was worse than market forecasts.
JCI in the first session ended down 1.3% or 65.1 points to 5,096.685, or reversed from the opening position which rose 0.1% at 5,169.24. A total of 102 stocks rose, 296 declined, and 138 others were flat.
Trade data shows that foreign investors did net selling of Rp 438.2 billion in the regular market today, of the total transaction value today which reached Rp 4.3 trillion.
The Central Statistics Agency (BPS) announced that Indonesia’s import figures in August 2020 were valued at US $ 10.74 billion, down 24.2% compared to the same period the previous year (year-on-year/YoY).
The decline in imports indicates that domestic demand for raw materials and capital goods for manufacturing purposes is still weak, considering that more than 80% of national imports are imports of non-consumptive goods.
The import contraction was worse than compiled market consensus CNBC Indonesia where imports are expected to fall 18.8% (YoY). The Reuters version of market consensus expects a contraction of 20.6% (YoY).
According to Revinitif data, all sectoral stock indexes fell, except for the energy and information technology sectors which rose by 0.4% and 0.7%, respectively. PT Bank Central Asia Tbk (BBCA) shares became the main weight of the JCI by weakening 2.6% and contributing to a decrease of 25.7 points to the stock exchange index.
Shares of PT Telekomunikasi Indonesia Tbk (TLKM) and PT Bank Mandiri Tbk (BMRI) followed with corrective contributions of 9.2 points and 4.6 points. Both were corrected by more than 2%.
On the other hand, shares that resisted the correction were PT United Tractors Tbk (UNTR) which gained 1.6% and contributed to an increase of 1.8 points. Likewise, shares of PT Chandra Asri Petrochemical Tbk (TPIA) which rose 1.5% and contributed to the JCI rally by 0.4 points.
This Asian market moved mixed, where the Japanese Nikkei index fell 0.5%, Hong Kong Hang Seng rose 0.5%, and Singapore’s STI rose 0.6%. South Korea’s KOSPI Index recorded a growth of 0.4%.
CNBC INDONESIA RESEARCH TEAM
(ags/ags)
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