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Jakarta Post

Vaccine, weakening US dollar to help JCI soar

  • Riska Rahman

    Jakarta

PREMIUM
Jakarta   /   Mon, January 18 2021   /  01:00 am
A woman walks past a large screen showing the trading numbers on the Indonesia Stock Exchange (IDX) in Jakarta on March 9, 2020. - Equity markets collapsed on March 9 as the rapidly spreading coronavirus fans fears for the global economy, while a crash in oil prices added to the panic with energy firms taking a hammering and wiping hundreds of billions off valuations. (AFP/Adek Berry)

Analysts are optimistic about the recovery of the capital market this year after last year’s slump, thanks to the COVID-19 vaccination and weakening US dollar. As of Wednesday, the Jakarta Composite Index (JCI), the main gauge of the Indonesia Stock Exchange (IDX), had surged 4.71 percent to 6,428.59 since the beginning of January, and jumped 8 percent from Jan. 13 last year. After a challenging and highly volatile 2020 due to the pandemic, Mirae Asset Sekuritas analyst Hariyanto Wijaya said on Dec. 12 that he expected the JCI to fare better this year on the back of earnings growth recovery and preference for emerging market equities asset classes, including stocks and bonds, amid the weakening United States dollar. “The US dollar is likely to continue weakening in 2021 due to the US’ current account and fiscal deficits,” he wrote in a research note, addi...