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Jakarta Post

Indonesian stocks succumb to the red despite global market jumps

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Wed, March 18, 2020   /   11:37 am
Indonesian stocks succumb to the red despite global market jumps The Indonesia Stock Exchange (IDX) logo is seen at the IDX building in Jakarta on March 13. The Jakarta Composite Index (JCI) briefly climbed 0.17 percent to 4,464.13 upon opening but failed to maintain the uptrend seconds later as it swiftly turned around and nosedived into the red. (JP/Seto Wardhana)

Indonesian stocks fell deeper in the red on Wednesday morning despite rebounds recorded by global markets. 

The Jakarta Composite Index (JCI) briefly climbed 0.17 percent to 4,464.13 upon opening but  failed to maintain the uptrend seconds later as it swiftly turned around and nosedived into the red. The index has dropped more than 1 percent as of 10:48 a.m. in Jakarta, with 232 stocks down, 82 stagnate and 91 still managing to book gains.

Coal miner PT Bukit Asam recorded the steepest decline of 6.43 percent, with telecommunication tower firm PT Tower Bersama Infrastructure following suit as it tumbled 6.28 percent. Property developer PT Repower Asia Indonesia gained 17.24 percent, production house PT MD Pictures rose 11.85 percent and agricultural trading firm PT Agro Yasa Lestari was up 8 percent.

Read also: Trading halted third time in week as stocks touch 5-year low, rupiah breaks Rp 15,000 to dollar

Foreign investors dumped Rp 54.83 billion (US$3.6 million) worth of stocks during morning trade. The rupiah depreciated 0.32 percent to Rp 15,221 per US dollar.

“Market players are also anticipating the government’s next move to launch a new stimulus that could support our economy [amid the pandemic],” Binaartha Parama Sekuritas Nafan Aji told The Jakarta Post via text message on Wednesday.

He added that the wider COVID-19 spread in Indonesia, coupled with the absence of domestic positive sentiment, had battered the index on Wednesday.

Panin Sekuritas analyst William Hartanto projected the JCI to move between 4,330 and 4,600 on Wednesday, with strong potential for further weakening. 

Read also: Major businesses split over lockdown, support social distancing

The government announced 172 confirmed cases of COVID-19 on Tuesday, with the death toll having increased to seven.

Asian markets gained on Wednesday morning, with Tokyo jumping 1.36 percent, Shanghai 1.26 percent, Hong Kong 0.28 percent and Singapore 2.55 percent. On Wall Street, Dow Jones jumped 5.2 percent, S&P 500 soared 6 percent and Nasdaq climbed 6.23 percent during Tuesday’s session.

The gain on Wall Street followed United States President Donald Trump’s announcement that his administration was pursuing a $1 trillion stimulus package that could deliver $1,000 checks to Americans within two weeks to buttress the economy from COVID-19 spread risks.