IHSG contraction projected in tandem with Aug inflation data release

IHSG contraction projected in tandem with Aug inflation data release

An employee shows the movement of IHSG through his gadget in Jakarta ANTARA FOTO/Puspa Perwitasari/foc.

We project the IHSG to weaken in today's trade.
Jakarta (ANTARA) - The Jakarta Composite Share Price Index (IHSG) is forecast to contract on Tuesday along with the release of inflation data in August 2020.

The Indonesian Stock Exchange (BEI) index rose 0.96 points, or 0.02 percent, to reach 5,239.45, while the index of the 45 most liquid stocks inched up 1.19 points, or 0.14 percent, to touch 825.37.

"We project the IHSG to weaken during today's trade," the Samuel Sekuritas Research Team noted in a report quoted by Antara on Tuesday.

The US Stock Exchange closed variative overnight. The performance in August 2020 is the best for S&P 500 since 1986 and for Dow Jones since 1934. The Nasdaq too closed at a record high.

In Asia, trade at several stock exchanges closed variative on Monday. Meanwhile, the IHSG dropped 2.02 percent to close at 5,238, with foreign net sales totaling Rp1.8 trillion in the regular market. Investors appeared to be watchful of the MSCI Indonesia index rebalancing

Indonesia’s manufacturing Purchasing Managers' Index (PMI) for August 2020 climbed to 50.8, from 46.9 earlier.

The Indonesian inflation data in August 2020 will be released on Tuesday afternoon, with the Trading Economics consensus projection of 0.101 percent month-on-month (mom) and 1.4 percent year-on-year (yoy).

If the inflation data is negative, then Indonesia will record deflation in two successive months, thereby indicative of the national economy not having recovered.

The US Manufacturing PMI, likely to be released on Tuesday night, is projected to reach 53.6.

Regional markets recorded a rise on Tuesday morning, with the Nikkei Index rising 14.24 points, or 0.06 percent, to 23,154, the Hang Seng Index soaring 19.87 points, or 0.08 percent, to 25,196.92; and the Straits Times Index strengthening 16.35 points, or 0.65 percent, to 2,516.16.
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