IHSG plunges on Friday over negative sentiment from COVID-19

IHSG plunges on Friday over negative sentiment from COVID-19

Photo Illustration: A cleaning service staff walked in front of a giant screen showing the Indonesian composite index (IHSG) at the Indonesia Stock Exchange (IDX) in Jakarta. ANTARA FOTO/Rivan Awal Lingga/ama/gtm

Jakarta (ANTARA) - The Indonesian composite index (IHSG) of the Indonesia Stock Exchange, Jakarta, opened lower 14.32 points, or 0.24 percent, to 5,857.72, Friday morning, and further plummet projected over negative market sentiment from the coronavirus (COVID-19) outbreak.

In the meantime, the index of the 45 most liquid stocks, or LQ45, also plunged 4.6 points, or 0.48 percent, to 949.61.

According to Alfiansyah, an analyst at Valbury Securities, the outbreak may severely impact economic growth globally, including in Indonesia, which is one of China's major trading partner.

The analyst has forecast that if China's economic growth were to decline by one percent, it would contribute to a 0.3-percent drop in Indonesia's economic growth.

However, Indonesia's government has yet to revise its 2020 economic growth target that has been set at 5.3 percent.

Apart from the outbreak, the IHSG may drop before the weekend-holidays, as the Federal Reserve will reduce liquidity injections into the market, which had corrected US stocks on Thursday (Feb 13).

On Friday morning, only Tokyo's Nikkei had depreciated by 157 points, or 0.66 percent, to 23,670.7, while the Hang Seng Index rose by 133.8 points, or 0.48 percent, to 27,863.8; and the Straits Times Index also climbed 2.52 points, or 0.08 percent, to 3,222.61.

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