Jakarta, CNBC Indonesia – The compact capital market is under pressure amid bad news related to the increase in Covid-19 cases in Europe and China. Today, the shadow of the correction still lurks.
The Composite Stock Price Index (JCI) closed down 0.82% or 54.7 points to 6,602.21 at the end of trading Wednesday (27/10/2021). Almost all indexes weakened, except for the health sector stock index and basic materials.
The financial sector index, which has the largest weight on the index, also sank, by 1%, in line with the correction in the stock price of big banks. A total of 334 stocks fell, another 193 rose, and only 137 ended flat.
However, in the midst of such a correction, foreign investors actually took advantage of the opportunity to buy up shares, so they scored a net purchase (net buy) in the regular market worth Rp 151.56 billion.
The JCI correction was in line with the weakening of the majority of major Asian bourses which closed down, exacerbated by bad sentiment from the continued liquidity crisis of Chinese property companies and the increase in Covid-19 cases in the Panda Country.
Japan’s Nikkei Index fell 0.03% to 29,098.24, Hong Kong’s Hang Seng fell 1.57% to 25,628.74, China’s Shanghai Composite shed 0.98% to 3,562.31, and South Korea’s KOSPI fell 0.77% to 3,025.49.
On the money market, the rupiah weakened against the United States (US) dollar at the Bank Indonesia (BI) middle rate. The BI middle rate or the Jakarta Interbank Spot Dollar Rate/Jisdor reference rate was at Rp 14,184 or 0.13% lower compared to the previous day.
In the spot market, US$1 is priced at Rp. 14,170 at the close of trading, aka depreciating 0.14%. Most major Asian currencies also have little to do against the US dollar.
Meanwhile, the yield (yield) The majority of government bonds or Government Securities (SBN) also weakened, indicating that investors prefer to hunt down these safe assets rather than invest their funds in the stock market.
Only three types of SBN are released by investors, namely government bonds tenor 1, 5, and 25 years. According to Refinitiv data, yield 1-year SBN strengthened 6 basis points (bp) to 3.374%, yield 5 -year -old SBN rose 1.6 bp to 4.862%, and yield The 25 -year SBN rose 1.4 bp to 7.22%.
Meanwhile, the yield of SBN with a 10 -year tenor which is the benchmark in the market fell slightly 0.1 bp to 6.153%. Yield in the opposite direction of the price, resulting in a decline yield indicates that bond prices are strengthening, and vice versa. One basis point is equivalent to 1/100 of 1%.
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