The Jakarta Post
Stocks traded on the Indonesia Stock Exchange (IDX) hit circuit breaker upon opening on Friday, plunging 5 percent to 2016 levels as global stocks suffer a historic rout driven by fears over the coronavirus (COVID-19) pandemic.
Local stocks benchmark the Jakarta Composite Index (JCI) touched 4,651 at 9:15 a.m., triggering a 30-minute halt as stipulated by a new IDX regulation issued on March 11 in light of the market rout.
Blue chip stocks were battered, slumping more than 6 percent, including Indofood CBP Sukses Makmur (ICBP), Telekomunikasi Indonesia (TLKM), Bank Mandiri (BMRI), Astra International (ASII), Bank Rakyat Indonesia (BBRI), HM Sampoerna (HMSP) and Bukit Asam (PTBA). The bourse authority introduced on Thursday a new rule that would cap stock losses at 7 percent.
"Stocks’ technical shows a strong bearish trend. Given the situation, we're not recommending investors to buy any stocks due to the highly volatile market," Artha Sekuritas analyst Dennies Christopher wrote in a research note on Thursday.
A woman walks past a large screen showing the trading numbers on the Indonesia Stock Exchange (IDX) in Jakarta on March 9, 2020. (AFP/Adek Berry)
If the index keeps falling to more than 10 percent after the first suspension is lifted, the bourse will halt trading for another 30 minutes, according to IDX policy. Trading will be stopped entirely if the JCI plunges deeper than 15 percent. The suspension can last for more than one day with approval or upon instruction from the Financial Services Authority (OJK).
The rupiah depreciated 1 percent to Rp 14,522 per US dollar and 10-year government bond yield jumped 28.1 basis points to 7.25 percent, indicating higher risks of investment in rupiah assets.
The decline followed a historic market rout in global equity markets.
Tokyo tumbled 9 percent, entering bear territory, marked by a 20 percent slump from the index’s recent high. Hong Kong fell 6.6 percent and Singapore nosedived 6 percent as per 8:36 a.m. Jakarta time.
London recorded its worst day since the 1987 crash, freefalling 10.9 percent. Frankfurt experienced its darkest day since 1989, the year the Berlin Wall fell. Paris suffered its worst one-day loss ever.
The US’ Dow Jones saw its worst session since 1987 with 9.99 percent losses.
The declines were oblivious to government and central bank announcements of stimulus, market intervention and rate cuts to stabilize jolted economies worldwide.
The World Health Organization (WHO) on Thursday declared COVID-19 a global pandemic, as cases mounted to more than 130,000 worldwide. More than 4,900 have died. (est)