Jakarta, CNBC Indonesia – The Indonesian stock exchange is on holiday to commemorate the 76th Indonesian Independence Day, which falls today, Tuesday (17/8/2021). Thus, the Composite Stock Price Index (JCI) is not ‘competing’ today.
If the market opens today, the JCI seems to have the potential to weaken again, continuing the correction on the previous 2 trading days. This is because there are two main negative sentiments that could affect the JCI movement today.
First, regarding the effect of the extension of the Level 4 Community Activity Restrictions (PPKM) for Java-Bali from 16 August 2021 to 23 August 2021.
This was conveyed by the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, in his press conference, Monday (16/8/2021) yesterday.
“At the direction and direction of the President [Joko Widodo], then PPKM Levels 4.3 and 2 in Java and Bali are extended until August 23, 2021,” said Luhut.
Luhut said that the implementation of the PPKM extension until August 16, 2021 had shown good results. There was a decline in confirmed cases of up to 76% until August 15, 2021. Meanwhile, the trend of the positivity rate continued to decline.
Several new rules related to the extension of PPKM Level 4 this time, including the implementation of activities in the non-essential sector implemented 100% Work From Home (WFH), for pharmacies and drug stores can be open for 24 hours.
Then, restaurants/restaurants, cafes with service areas in open spaces are allowed to open with strict health protocols until 20:00 local time with a maximum capacity of 25%, one table for a maximum of two people, and a maximum meal time of 30 minutes whose technical arrangements are determined by Local government
Other regulations, which are related to supermarkets, traditional markets, grocery stores and supermarkets that sell daily necessities, are limited to operating hours until 20:00 local time with a capacity of 50% visitors.
Sentiment second, related to mThe majority of Asian stock markets tended to weaken in early trading today, Tuesday (17/8/2021), in line with the spread of the delta variant of the Covid-19 virus, which is still raging and affecting investor confidence.
According to data as of 8:51 a.m. EDT, Japan’s Nikkei index was up 0.19% at 27,575.010, while the Tokyo Topix index was down 0.08% at 1,923.48.
Then, China’s Shanghai Composite Index appreciated 017% to 3,522,950 this morning.
Hong Kong’s Hang Seng fell 0.12% to 26,140.689 this morning. Singapore’s STI fell 0.50% to 3,130,070. Furthermore, South Korea’s KOSPI fell 0.58% to 3,152.12.
Senior market analyst Jeffrey Halley noted that the “evolution of the outbreak” in Asia is currently weighing on sentiment in the market.
“The widespread outbreak and restrictions will be a game changer for the Asian and, arguably, global recovery too when considering the implications for supply chains,” quoted from Refinitiv, Tuesday (17/8/2021).
Meanwhile, the S&P 500 and Dow Jones indexes on the United States (US) stock exchange or the Wall Street exchange reached record highs on Monday (16/8/2021) local time. This occurs as investors tend to switch to defensive sector stocks and ignore the less than encouraging economic data from China.
The S&P 500 index was up 0.26% at 4,479.71. This level is double the closing low in the March 2020 pandemic last year, which was at 2,237.40. According to analysis CNBC InternationalThe S&P rally was the fastest bull market to double its lowest level since World War II.
Meanwhile, the Dow Jones index rose 0.31% to 35,625.40. In contrast to other, tech-heavy stock indexes, the Nasdaq Composite fell 0.20% to 14,793.76.
Sectors that are sensitive to economic conditions, such as energy, materials, and financial stocks weakened. This comes after China’s factory production and retail sales growth slowed sharply and missed expectations in July, as the delta variant Covid-19 outbreak and flooding disrupted business operations.
Investors will be looking forward to data on US retail sales, to be released Tuesday US time by the Census Bureau of Uncle Sam’s State. Economists surveyed by Dow Jones predicted a 0.3% drop in retail sales for the last month, after June’s showing a staggering 0.6% figure.
Yesterday, iHSG closed down 0.84% to 6,087.91. JCI had dropped to 1% at the close of trading session I today. JCI also left the psychological level of 6,100.
Trade data noted that the transaction value on Monday fell again to Rp 11.7 trillion. It was observed that foreign investors made a net buy of Rp 429 billion in the regular market. A total of 156 stocks rose, 342 stocks weakened and 152 others were stagnant.
Foreign investors made a net purchase of shares in PT Bukalapak.com Tbk (BUKA) amounting to Rp 247 billion. In addition to BUKA shares, foreigners are also recorded to have collected PT Bank Rakyat Indonesia Tbk (BBRI) shares of Rp 184 billion.
CNBC INDONESIA RESEARCH TEAM
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