We expect the Indonesian Composite Index to have the opportunity to strengthen at the start of the weekJakarta (ANTARA) - Anugrah Mega Investama Director Hans Kwee assessed that implementation of the new normal scenario would lend positive sentiment to the Indonesian Composite Index (IHSG) next week.
"The new normal plan in the country or the easing of large-scale social restrictions (PSBB) will lend positive sentiment to the Indonesian stock market," Kwee stated in Jakarta on Sunday.
In the meantime, a positive market sentiment arose from the easing of social restrictions in various countries and the absence of signs of the second wave of COVID-19.
Furthermore, Kwee believes that market participants will remain watchful of US tensions with China after the Chinese National People's Congress approved a national security bill for Hong Kong.
"This presents an opportunity for the United States to impose sanctions on Chinese companies and officials for the situation in Hong Kong. This may come to the market's attention," Kwee pointed out.
The statement of US President Donald Trump, which hinted at no change in the trade agreement with China despite rising tensions between both nations, was viewed as having lent a positive sentiment at the start of the week.
According to Trump, revocation of Hong Kong's privileges included not being granted privileged tariff treatment, no free entry for the people of Hong Kong into the US, and no dual citizenship.
Another factor contributing to the sentiment is the market participants’ close watch over the development of research to find a COVID-19 vaccine.
Furthermore, the planned Eurozone recovery fund of 750 billion Euros offers a positive market sentiment.
"We expect the Indonesian Composite Index to have the opportunity to strengthen at the start of the week," he stated.
Indonesian President Joko Widodo (Jokowi) had earlier expressed intent to expand the enforcement of the new normal order in other cities and districts if transmission of the new coronavirus disease (COVID-19) significantly declined in those areas.
Speaking during a limited videoconferencing meeting with his cabinet members here, Wednesday, President Jokowi noted that the new normal order amid the COVID-19 pandemic can be extended by taking into account the real data and facts.
"Yesterday, we had begun. We had readied our military (TNI) and police personnel for deployment," he remarked at the virtual meeting held to discuss preparations for productive and secure implementation to navigate a new normal with COVID-19.
On Tuesday (May 26), President Jokowi spoke of the government having begun the deployment of TNI and police personnel at crowded points in four provinces and 25 cities and districts to secure the imposition of the COVID-19-related new normal order.
During the day, the president observed preparations for enforcing the standard operating procedures of the new normal order and preventive measures for halting the spread of COVID-19 in public areas, such as Central Jakarta's MRT stations and shopping malls in Bekasi, West Java.
President Jokowi highlighted the government’s decision to make people more disciplined in implementing healthcare protocols in all sectors of life, including bureaucracy, economy, and daily life.
The order for controlling and preventing the spread of COVID-19 contains new values and norms, supported by the three basic mechanisms of an early detection system; a healthcare protocol system; and a system for disseminating information on COVID-19 preventive measures.
Implementation of these three basic mechanisms was projected to help Indonesia to better cope with the coronavirus pandemic and preserve its socio-economic strengths.
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Translator: Citro A, Azis Kurmala
Editor: Fardah Assegaf
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