Indonesia Composite Index, Rupiah Open Strong in Early Trade on Hope of Covid-19 Vaccine

JAKARTA, KOMPAS.com – The Indonesian Composite Index (ICI) of the Indonesia Stock Exchange (IDX) opened in the green zone at the first trading session and the exchange rate of rupiah strengthened in the spot market on Monday, July 13.

According to the real time information (RTI) at 9:08am, the ICI climbed 36.53 points (0.73 percent) to 5,067.79. A total of 204 shares made it into the green zone and 65 shares entered the red zone. Meanwhile, 131 shares were stagnant.

To date, the transaction value has reached 494.8 billion rupiahs ($34.3 million) with a volume of 705.4 million shares.

Anugerah Mega Investama Director Hans Kwee said that ICI could strengthen along with the invention of the Covid-19 vaccine such as by the biotechnology company Moderna which will enter phase 3. However, the vaccine must pass four phases before carrying out mass production.

“On Monday, the ICI strengthens due to the positive sentiment from the market. The development of research in medicines and the Covid-19 vaccine provides positive sentiment on the capital market,” Hans said.

Also read: Indonesia Enters a Dangerous New Phase in Covid-19 Fight

Meanwhile, the index of the regional stock market is varied upon opening. Hong Kong’s Hang Seng Index rose 0.27 percent, the Shanghai Composite Index rose 0.35 percent, and Tokyo Nikkei also rose 1.61 percent. But the Singapore Strait Times index fell 0.22 percent.

On the other hand, the exchange rate of rupiah in the spot market today has strengthened 65 points or 0.45 percent at the level of 14,370 rupiahs per US dollar, compared to the previous closing of 14,435 rupiahs per US dollar.

PT Monex Investindo Futures’ Research and Education Head Ariston Tjendra said the rupiah currency gained strength today because the Asian stock index has climbed following positive sentiment in the US and European stock markets over the weekend. This was also affected by the potential economic recovery amid the pandemic.

"The rupiah could also strengthen today following the positive sentiment," said Ariston.

On the other hand, the market is still monitoring the rise of Covid-19 transmission as it will slow down economic recovery. Moreover, the market is also concerned with the World Health Organization report on the highest increase in global transmission in 24 hours by more than 230,000.

"The issue of Covid-19 transmission could put pressure on risk assets including the rupiah," he said.

He projected that the exchange rate of rupiah today could touch 14,350 rupiahs to 14,500 rupiahs per US dollar.

(Writer : Kiki Safitri | Editor : Erlangga Djumena)

Source: Kompas.com https://money.kompas.com/read/2020/07/13/094539726/awali-pekan-ihsg-dan-rupiah-bangkit.