The growing domestic sentiment is undoubtedly related to the Jakarta provincial government's policy on total imposition of PSBB due to the rising number of COVID-19 casesJakarta (ANTARA) - The Jakarta Composite Index (IHSG) plunged on Thursday evening amid Jakarta Governor Anies Baswedan's decision on total re-imposition of the large-scale social restrictions (PSBB) policy, effective from September 14.
Index of the Indonesian Stock Exchange (BEI) ended 257.92 points lower, declining 5.01 percent, to 5,891.46, while index of the 45 most liquid stocks (LQ45) slid 48.24 points, or six percent, to reach 756.12.
"The growing domestic sentiment is undoubtedly related to the Jakarta provincial government's policy on total imposition of PSBB due to the rising number of COVID-19 cases that will potentially lead to sluggish economic activities in the capital. Hence, the stability of national economic performance may be disrupted," Bina Artha Sekuritas analyst M. Nafan Aji Gusta Utama stated on Thursday.
Conversely, the IHSG movement was also influenced by a lack of domestic microeconomic data that may have a positive impact on the market, Utama remarked.
"The global market is awaiting the ECB’s (European Central Bank's) decision on its interest rate that is expected to remain unchanged at zero percent. Meanwhile, the market is also awaiting data of the US unemployment claims," he stated.
Related news: COVID-19: Jakarta Governor slams emergency brake, re-enforces PSBB
After opening lower, the IHSG continued to plunge by nearly five percent during the first session, thereby leading to the share trade being frozen temporarily. During the second session, the IHSG was yet unable to veer away from the negative territory until the close of trade.
On a sectoral basis, the shares of all sectors recorded a correction, with the financial sector falling deeper, at minus 5.94 percent, followed by the various industrial sectors, at minus 5.9 percent, and the basic industrial sector, at minus 5.62 percent.
Thursday's trade also witnessed net sales of foreign investors reaching Rp663 billion.
According to trade data, 723,174 transactions were recorded on Thursday, with 9.94 billion shares, valued at Rp10.3 trillion, changing hands. Gainers were outnumbered by decliners, with 50 shares climbing against 444 shares falling, and 97 shares remaining unchanged.
In regional markets on Thursday evening, the Nikkei Index swelled 202.93 points, or 0.88 percent, to 23,235.47; the Hang Seng Index fell 155.39 points, or 0.64 percent, to 24,313.54; and the Straits Times Index weakened 16.91 points, or 0.68 percent, to reach 2,482.42.
Related news: Strict PSBB will help check COVID-19 spread: health expert
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Translator: Citro Atmoko/Suharto
Editor: Sri Haryati
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