The world continues to move, so does the country’s economic conditions. Now, for those of you who are curious about the latest world and Indonesian market conditions, you need the most up-to-date informationan update. With the latest information and analysis of market conditions, you can take the right and fast steps in business and in investing.
What is the current condition of the world market and Indonesia, it might affect some of the decisions you make. If the economic conditions are good, then the expectations of business development and investment will be even greater. Conversely, if the economy is sluggish and deteriorating, you can take new opportunities, or at least take quick steps so that you can avoid bigger disasters.
Here it is market update (Thursday, July 23, 2020) for you!
During this week, the rupiah exchange rate has weakened at the level of Rp14,500 to Rp14,800 per US dollar (Bank Indonesia JISDOR reference rate). Despite the weakening of the rupiah against the USD, there are some positive news which can pump domestic and foreign market optimism.
Among them, additional economic stimulus from the government through employee spending is expected to be able to encourage consumer purchasing power. On the other hand, the development of the corona virus vaccine continues to show positive progress, so that the hope that the Covid-19 pandemic will end soon will be even greater.
Market update global:
1. World stock indices moved various last weekend. This happened because investors considered the possibility of increasing tensions between the US and China and increasing cases of the coronavirus virus. US indexes continued their third consecutive weekly gain, but most Asian stock exchanges ended the week with losses.
2. The Chinese economy returned to growth in the second quarter of 2020, with an increase of + 3.2% YoY.
Domestic market update:
1. JCI closed higher by + 1.0% weekly (WoW). The most superior sectors were industry and agriculture, respectively up + 6.0% WoW and + 5.7% WoW. CPO stock has increased due to higher CPO prices
2. Rupiah depreciates by -1.9% WoW to USD / IDR 14.703.
3. Indonesian government bond yields have fallen by an average of 5 bps with the biggest decrease of 1-5 years. BI’s decision to cut the benchmark interest rate by 25 bps to 4% as expected by the economy, so that no price movements occur after this decision.
4. The number of COVID-19 cases in Indonesia continues to grow and has reached 88,214 with a mortality rate of 4.8% and a recovery rate of 53.3%. Meanwhile, the Jakarta Governor announced that the PSBB would be extended to the Greater Jakarta area because conditions for relaxation had not been met. Therefore, the partial PSBB will be extended until mid-July for further assessment, with businesses permitted to operate at 50% capacity.
5. The Ministry of Finance decides to extend the tax stimulus provided to reduce the impact of COVID-19 until December 2020. This includes PPh 21 for certain industries borne by the government, final income tax for government-borne MSMEs, import tax reduction of PPh 22 in corporate tax installments by 30% and also VAT refunds.
6. The trade balance recorded a surplus of US $ 1.3 billion in June (US $ 2.1 billion in May 2020) or a surplus of US $ 2.9 billion in the second quarter of 2020 (2Q20) compared with US $ 2.6 billion in 1Q20. Trade shows some recovery with exports higher at + 2% YoY (YoY) compared to -30% YoY in May 2020 and a smaller import contraction at 6% YoY (-42% YoY in May).
Escalation of the US and China Trade War Became the Weakening Composite
What is the Composite Stock Price Index (CSPI)? The following explanation
This is the Right Investment Choice when Corona Virus Makes the Stock Exchange languish
Seeing the conditions as above, then there are some investment recommendations for you:
1. For you who have short term goals (For example, you want to save money to make sacrifices on Eid al-Adha), you can allocate funds in money market mutual funds.
In #BukaReksa many products are okay, one of them is Mandiri Syariah Mutual Funds BukaReksa Money Market which has features instant redemption. Do not forget first register here if not yet an investor.
2. For you that has a long-term goal (for example for Umroh in 2026), it is really fitting to enter the stock mutual funds now because the price of stock mutual funds has many good discounts. In #BukaReksa there are also many mutual fund products that are okay, immediately check here!
3. Gold investment in #Open the Gold also never wrong, especially if the price of gold continues to rise. But don’t worry, you can still lock up the price of gold up front and pay in installments at a flat price every month with the #CicilEmas feature. Invest in gold and check the price of gold today here!
What are you waiting for, let’s allocate your funds for future investments.