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Jakarta Post

Indonesian stocks reverse losses in volatile trade as coronavirus fears haunt

  • Riska Rahman and Esther Samboh

    The Jakarta Post

Jakarta   /   Mon, March 2, 2020   /   10:16 am
Indonesian stocks reverse losses in volatile trade as coronavirus fears haunt Workers repair building signboards at the Indonesia Stock Exchange (IDX), SCBD, Jakarta, on Feb. 12. (JP/Wendra Ajistyatama)

Indonesia’s stock index extended losses before reversing to gains on Monday morning trade, after a market rout sent the gauge to its worst month in six years as coronavirus cases outside China grow rapidly, potentially dampening the global economy.

The benchmark Jakarta Composite Index (JCI) opened Monday trade falling to the lowest level of 5,410 at 9:10 a.m., a 0.77 percent drop from Friday’s close at 5,452. It then quickly reversed losses to gain 0.57 percent from Friday’s close at 9:30 a.m. to 5,483. At the time of publishing the story at 10:15 a.m., the stock plummeted again but bounced back to 5,460, a 0.15 percent increase from Friday's close.

Asian markets fell on Monday following China’s factory activity data release, which show the steepest contraction in factory activity ever recorded in history. Factories have closed down or are operating with very limited activity in China following the coronavirus outbreak, which has killed more than 3,000 people worldwide with over 88,000 cases.

E-minis for the US’ S&P500 declined more than 1 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3 percent. Japan opened 1.3 percent lower. Australia fell 3 percent and New Zealand slid 3 percent into correction territory.

Factory activity in China, measured with the Purchasing Managers' Index (PMI), nosedived to 35.7 in February from 50.0 in January, well below the 50-point mark that separates monthly growth from contraction, Reuters reported. 

“Possibilities for further weakness remain although in the short-run there can be temporary increases. The short-term positive sentiment would be a manageable inflation rate and low interest rate,” CSA Institute equity analyst Aria Santoso said over the weekend.

Aria expected the JCI fall to not exceed the 5,000-mark, but would consolidate at between 5,400 and 5,800 upon recovery.

Bank Rakyat Indonesia (BBRI) and Bank Central Asia (BBCA) were among the top traded blue chip stocks, respectively dropping 0.48 percent to Rp 4,170 per share and 0.79 percent to Rp 31,200 apiece as of 9:30 a.m. State construction firm Pembangunan Perumahan (PTPP) also lost 0.41 percent to Rp 1,200.

 


If you want to help in the fight against COVID-19, we have compiled an up-to-date list of community initiatives designed to aid medical workers and low-income people in this article. Link: [UPDATED] Anti-COVID-19 initiatives: Helping Indonesia fight the outbreak