There’s Hope! Wall Street Rises, JCI Will Follow?

Jakarta, CNBC Indonesia – JCI started the week in a dark way after sinking one percent in yesterday’s trading session. Meanwhile, the rupiah weakened slightly in the midst of increasing cases of the Corona virus (Covid-19) in Indonesia and ahead of the Fed meeting.

National benchmark stock exchange index it closed down 1.06% ke level 6.655,166. Throughout yesterday’s trading, the JCI was traded in the red zone and continued to weaken from the beginning of session I to the close of trading.

Despite the fall, foreign investors recorded a net purchase (net buy) of IDR 27.21 billion in the regular market. But in cash and negotiated markets, foreigners are listed as selling net (net sell) of Rp 33.38 billion.

From global, US stock exchanges, Wall Street has had its worst week since the Corona virus pandemic hit the land of Uncle Sam. Wall Street’s three stock indexes fell significantly again.

Indeks Dow Jones drop 4.58%, then the S&P 500 index fell 5.68%. At worst, the Nasdaq Composite tumbled with a 7.55% correction in a week.

The stock market of Uncle Sam’s country was still correcting last Friday, causing several Asian stock exchanges to correct again on Monday (24/1/2022), including the JCI.

Only Japan’s Nikkei index and China’s Shanghai Composite are moving in the green. The Nikkei advanced 0.24%, while Shanghai edged up 0.04%.

This week, the US central bank (The Federal Reserve / The Fed) will hold a policy-making committee meeting (Federal Open Market Committee / FOMC), to be precise on January 25-26, 2022.

With inflation in the US continuing to persist, the market expects the Fed to be aggressive in tightening monetary policy.

The Fed is expected to raise its benchmark interest rate 4-5 times in 2022. After that, the US central bank is also predicted to take a contractionary monetary policy by reducing the size of its balance sheet (balance sheet).

In addition to the sentiments above, the development of the Covid-19 pandemic is also a concern for investors today. All because of the spread of infection with the new variant of Covid-19 Omicron.

Temporary, The rupiah closed down 5 points or 0.03% to Rp 14,340/US$ on Monday, from the close of trading on Friday last week.

The price of the majority of government bonds or Government Securities (SBN) closed stronger in trading Monday (24/1/2022), amid the increase in cases of the Corona virus (Covid-19) globally and in Indonesia and ahead of the policy-making committee meeting (Federal Open Market Committee / FOMC), which will be held on January 25-26 2022.

The majority of investors are hunting for government bonds today, marked by lower yields or lower yields yield. Only one -year, 15 -year, and 30 -year -old SBNs tend to be let go by investors, marked by an increase yield and lower prices.

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