Jakarta, CNBC Indonesia – Financial markets have varied this week, market players have received negative sentiment coming from within the country where cases of disease caused by the corona virus (Covid-19) recorded a record high, but the positive ones came from externals.
The Composite Stock Price Index (JCI) continued its rally for 9 consecutive weeks after posting a gain of 0.47% to 5,810.483. During that period, the total JCI shot up by almost 18% and was at its highest level since February.
Even though it managed to get stronger, foreign investors made a net sell of almost Rp 4 trillion over the past week.
Meanwhile the rupiah exchange rate weakened 0.11% against the United States dollar (US) of Rp.14,085 / US $ during this week, ending its never-weakening performance in the last 9 weeks. The details, strengthened for 8 weeks and a week of stagnation.
Then the majority bond prices strengthened, as reflected by producewho is experiencing a decline. To note, the movement of the best yield compared to bond prices, when the price increases, the yield will decrease, and vice versa.
Produce 1-year Government Securities (SBN) rose 0.4 basis points (bps), meanwhile produce other tenors decreased. This means that only 1 year tenor SBN weakened, the rest strengthened.
Produce The 10-year SBN was down 2 bps to 6.198%, and is still approaching the lowest level since January 2018.
The pressure for financial markets came after the Covid-19 cases set a record daily addition of 6,267 cases on Sunday (29/11/2020). The record then broke again on Thursday (3/12/2020), the number of new cases was recorded at 8,369 people.
In the last 2 weeks, the average number of cases has also increased to 1.03% per day, compared to the previous 2 weeks of 0.92% per day.
Spokesperson for the Covid-19 Handling Task Force, Prof. Wiku Adisasmito, even said that the additional cases could not be tolerated.
“We can see that in the last few days we have set new records. Previously we have never reached above 5,000, but unfortunately positive cases are increasing, even per day, reaching more than 8,000 cases. This is a very large number and cannot be tolerated. “said Prof. Wiku, in a press conference on Thursday (3/12/2020).
This spike in cases certainly worries investors if Large-Scale Social Restrictions (PSBB) will be tightened again, which could hamper Indonesia’s economic recovery.
Bad news for the domestic financial market on Monday (7/12/2020) tomorrow, because the Covid-19 cases today and yesterday were over 6,000 people.
Based on data from the Indonesian Ministry of Health on Sunday (6/12/2020) until 12.00 WIB new cases were recorded 6,089, while yesterday there were 6,020 cases.
As a result, there is a risk that the JCI, rupiah and the bond market will weaken on Monday.