With negative sentiment from indexes on the Wall Street, the Indonesian Composite Index is projected to move lower and test support levels in the range of 4,750
Jakarta (ANTARA) - The Indonesian Composite Index (IHSG) of the Indonesian Stock Exchange (IDX) on Friday morning continued to plunge owing to market concerns over the second wave of the coronavirus disease (COVID-19) pandemic.

At 9:13 WIB, the Indonesian Composite Index plummeted 128.02 points, or 2.64 percent, to 4,726.74, while the group of 45 leading stocks, or the LQ45 Index, fell 23.26 points, or 3.12 percent, to 722.05.

"With negative sentiment from indexes on the Wall Street, the Indonesian Composite Index is projected to move lower and test support levels in the range of 4,750," Phintraco Research Team wrote in a report quoted by Antara in Jakarta on Friday.

Investors are expected to remain wary and watchful of developments of COVID-19 outbreak cases and concerns over the potential of a second wave.

Within the country, investors will also monitor closely the release of the Indonesia Consumer Confidence Index data in May and efforts to ease the Large-Scale Social Restrictions (PSBB) to encourage a gradual reopening of economic activities.

Taking into account the above sentiments, investors are advised against being too aggressive in accumulating buying. Investors should be sentient of the continued weakness of some banking stocks and various industries.

Concerns over the rise in the number of COVID-19 cases in several countries in the US along with the economic outlook of the Organization for Economic Co-operation and Development (OECD) that estimated the global economy to contract by six percent has lent a negative sentiment to these stocks.

Asian regional stock markets this morning included the Nikkei Index dropping 241.79 points, or 1.05 percent, to 23,883.16; Hang Seng Index falling 69.01 points, or 0.28 percent, to 24,980.72; and the Straits Times Index down 50.13 points, or 1.79 percent, to 2,750.44.

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Translator: Citro A, Azis Kurmala
Editor: Fardah Assegaf
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