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JCI increases at opening, rupiah struggles
The Indonesia Stock Exchange (idx
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The Indonesia Stock Exchange (idx.co.id) (idx.co.id)
The Indonesia Stock Exchange (idx.co.id)
The Jakarta Composite Index (JCI) rose 0.87 percent to 4,561.54 at Monday's opening (9:20 am), while the rupiah struggled, appreciating by 9 point to Rp 13,531 per US dollar amid a lack of positive sentiments in the market.
All of the sectoral indices in the Indonesia Stock Exchange (IDX) recorded gains at opening, led by the Miscellaneous Index (1.95 percent), the Manufacture Sector Index (1.18 percent) and the Consumer Sector Index (1.13 percent).
Meanwhile, Asian equities markets varied. The MSCI Asia Pacific Index reduced by 0.4 percent, South Korea's Kospi increased 0.2 percent ahead of China's gross domestic product (GDP) data release, which was expected to be disappointing.
Economists predicted that China would score 6.8 percent growth in the third quarter of this year, or lower compared to a 7 percent increase in the previous quarter. Other Chinese economic data releases, including industrial production data, fixed asset investment and retail sales were predicted to confirm the slow growth.
Bank Permata economist Josua Pardede projected the rupiah would depreciate on Monday as the slowing Chinese GDP would be released while the US dollar gained some traction from better economic figures. The US' preliminary UOM Consumer Sentiment in October grew from 87.2 to 92.1.
'Not to mention China's slowing economic growth release on Monday. It will drag Asian currencies down, including the rupiah,' he said as quoted by kontan.co.id on Saturday in Jakarta.
Josua predicted the rupiah would depreciate between Rp 13,500 and Rp 13,650 against the greenback.
Monex Investindo Futures researcher and analyst Yulia Safrina added that domestic sentiments had been limited. The investors focused on the latest economic package on labor and wages, the effect of which would be measurable in the mid and long term, and not in the short term.
"Regarding the fourth economic policy package, investors are in the phase of observing the details and the effectiveness. Thus, the rupiah could weaken to Rp 13,360-Rp 13,670 per US dollar,' Yulia stated. (ags/ebf)
