Jakarta, CNBC Indonesia– The national stock market has fallen this week, in response to the government’s decision to remove the Covid-19 death toll as an indicator of handling the pandemic, which is seen as a step backwards in transparency of the severity of the outbreak.
The Composite Stock Price Index (JCI) throughout the week fell 63.94 points, or equivalent to 1.03%, to 6139.492 or dropped from the psychological level of 6,200. At the end of last week, the main benchmark index of the stock exchange was at the level of 6,203,431.
This week’s trading lasts only 4 days due to the commemoration of the Hijri New Year. Of the four days, the JCI only strengthened one day on Thursday. On the other hand, the biggest correction occurred on the first day, Monday, by 1.22%.
For trading next week, on the first trading day all eyes will be on the release of Japanese economic data in the second quarter of this year. Consensus predicts Nippon’s economy will manage to grow 0.2% compared to the same quarter last year.
Meanwhile, domestically, this week’s trade balance data for July will be released where the consensus predicts that there will be a trade balance surplus of US$ 2.27 billion, up from last week’s position of US$ 1.32 billion.
In addition, a meeting of the Bank Indonesia Board of Governors (RDG) will also be held this week which will of course release whether the BI benchmark interest rate will remain at 3.5% which is the lowest level in history according to consensus predictions.
From Uncle Sam’s country, July’s retail spending figures will be released next Wednesday. Investors will certainly be watching whether retail spending is impacted by inflation and renewed fears of the spread of the Covid-19 virus.
Industrial production and manufacturing activity in July will also be released next week and will certainly show the impact of disruptions in supply chains around the world, and rising prices of raw goods.
The Federal Open Market Committee (FOMC) meeting will also hold a meeting next week and determine Uncle Sam’s benchmark interest rate. It is said that the Fed’s officials are still not unanimous on whether the US Central Bank should reduce the purchase of bonds whose value reaches US $ 120 billion per month. Investors will monitor whether there are signs the Fed will take action tapering at this meeting.
CNBC INDONESIA RESEARCH TEAM
(trp/trp)
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