JCI Weakened Triggered by Concerns Corona Virus Outbreak
The Composite Stock Price Index (CSPI) on the Indonesia Stock Exchange (IDX), Jakarta, fell 3.03 points or 0.05 percent to 5,863.91 points at the opening of trading on Monday (2/17/2020) morning.
Market sentiment still remains on the development of Corona Virus handling which hasn’t improved since last week. Meanwhile, the group of 45 leading shares or the LQ45 index moved down 1.07 points or 0.11 percent to 952.88 points.
Meanwhile, the group of 45 leading shares or the LQ45 index moved down 1.07 points or 0.11 percent to 952.88 points.
Head of Research at Valbury Sekuritas Alfiansyah said the corona virus was not handled properly and produced significant results so that market participants were worried about the impact on the global economy.
Alfiansyah also added that the limited release of corporate earnings reports has not been able to lift market sentiment.
If the Indonesian trade balance data released this week is above market expectations, it is expected to be a pillar for the JCI to advance in the green zone.
While at the close of trading on Friday (2/14/2020) last weekend, the CSPI weakened 5.01 points or 0.09 percent to 5866.95 points and the 45 leading stocks or LQ45 index moved down 0.25 points or 0, 03 percent to 953.95 points.
“The issue of the aggressive spread of the Corona Virus, remains a crucial sentiment because it causes a systemic impact on the market,” Binaartha Sekuritas analyst M Nafan Aji Gusta Utama said here on Friday (2/14/2020), quoted from Antara.
The spread of the corona virus or COVID-19 poses a big threat that has the potential to hamper the performance of global economic growth as revealed by Federal Reserve (Fed) Governor Jerome Powell.
JCI trading on Friday (2/14/2020) opened lower, an hour later the JCI moved up. However, in the second session of trading JCI again drove in the red zone until the close of stock trading. S.
Meanwhile, stock trading in the Asian region on Monday (2/17/2020) this afternoon, among others, the Nikkei index fell 166.2 points or 0.7 percent to 23,521.4 points. Conversely, the Hang Senng Index rose 183.2 points or 0.66 percent to 27,998.8 points and the Straits Times Index moved up 2.67 points or 0.08 percent to 3,217.36 points.
Estimated CSPI This Week
PT Anugerah Mega Investama Director Hans Kwee predicts the Composite Stock Price Index (CSPI) will rise this week. Previously, JCI continued to be corrected every day last week.
“Data on the corona virus transmission has not yet confirmed the peak of the case, but we assess the stock market will rebound next week” given the almost daily decline in our markets over the past week and global markets have begun to signal signs of improvement, “said the Director PT Anugerah Mega Investama was reported from Antara.
IMF Managing Director Kristalina Georgieva said the new corona virus had more impact compared to the SARS epidemic that occurred in 2002-2003. China has a contribution of as much as 17 percent to the global economy. Therefore, the corona virus or COVID-19 has a significant impact on the global economy.
Chinese government researchers say the COVID-19 virus outbreak is expected to reduce 1 percent of China’s economic growth rate by 2020. China’s economic growth is expected to decrease from 5.7 percent to 5 percent due to the corona virus outbreak by S&P Global Ratings.
“The economic impact of the Corona virus will be highly considered by market participants and will put pressure on the world financial markets if the corona outbreak cannot yet be addressed,” Hans Kwee said.