IHSG sheds 36.11 points on Monday but rebound projected

IHSG sheds 36.11 points on Monday but rebound projected

A visitor walked in front of a giant screen showing the Indonesian composite index (IHSG) of the Indonesia Stock Exchange (IDX) in Jakarta, Tuesday (February 4, 2020). Doc. ANTARA PHOTO/Reno Esnir/hp/gtm

We forecast the IHSG to depreciate by earlier this week, but there is an opportunity for it to climb up by the weekend
Jakarta (ANTARA) - The Indonesian composite index (IHSG) of the Indonesia Stock Exchange, Monday morning, plummeted 36.11 points (0.61 percent) to 5,846.15, while index of the 45 most liquid stocks (LQ45) tanked 9.25 points (0.97 percent) to 948.12.

Despite the negative trend, an analyst has projected a rebound in Indonesia's composite index.

"We forecast the IHSG to depreciate by earlier this week, but there is an opportunity for it to climb up by the weekend," PT Anugerah Mega Investama's director, Hans Kwee, stated in Jakarta.
Kwee believes that once a cure is found to the coronavirus (COVID-19) outbreak, which infected at least 25 countries outside mainland China, it will also reflect positively on the global financial markets.

"When the coronavirus outbreak can be exterminated, then the markets would start easing the impacts on the business and economy sectors," he stated.

A New York-based S&P Global Ratings views that China's non-performing loans may reach US$1.1 trillion owing to the coronavirus outbreak.

Meanwhile, a US multinational investment bank Goldman Sachs remarked that the global financial markets might underestimate the impacts of the COVID-19 on the world's economy and business.

"There may be a correction in the world's composite index," Kwee estimated.

While Tokyo's Nikkei was closed today, regional markets that depreciated at the market opening comprised the Hang Seng Index dropping 340.8 points, or 1.25 percent, to 26,968, and the Straits Times Index plunging 23 points, or 0.72 percent, 3,158.03.

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