IHSG opens higher following fortnight re-imposition of PSBB in Jakarta

IHSG opens higher following fortnight re-imposition of PSBB in Jakarta

A journalist takes a picture of the screen displaying the share price movement at the Indonesia Stock Exchange. ANTARA FOTO/Aditya Pradana Putra/foc.

The IHSG is likely to remain positive today in response to the total re-imposition of PSBB in Jakarta.
Jakarta (ANTARA) - The Jakarta Composite Index (IHSG) opened higher early this week as the 14-day-long large-scale social restrictions (PSBB) began to take effect.

The index of the Indonesian Stock Exchange (BEI) gained 43.31 points, or 0.68 percent, to reach 5,060.02, while the index of the 45 most liquid stocks (LQ45) rose 11.1 points, or 1.43 percent, to touch 789.41.

"The IHSG is likely to remain in positive territory today in response to the total re-imposition of PSBB in Jakarta," Samuel Sekuritas research team noted in a report quoted by Antara on Monday.

Movement of the stock market this week will start from the domestic front pertaining to the total re-imposition of PSBB in the capital, according to the report.

With the re-enforcement of PSBB, the Jakarta administration still allows 11 essential sectors to operate at 50-percent capacity, while offices outside the 11 sectors may operate at 25-percent capacity.

Dine-in restaurants are banned during the PSBB. However, malls and markets can operate at 50-percent capacity. Tourist sites and museums have been shut down.

Modes of public transportation continue to operate at 50-percent capacity, while the even-odd license plate policy is not valid.

These factors are projected to lead to high volatility of the IHSG. The index ended higher, at 2.57 percent, at the weekend, after plummeting five percent the day before. On a weekly basis, the index shed 4.08 percent.

The other domestic sentiment will arise from a spike in the number of confirmed COVID-19 cases. The daily case count of the coronavirus disease hit a record high of 3,806 on Saturday (Sept 12). The figure fell to 3,636 on Sunday (Sept 13), thereby taking the cumulative count to 218,322.

On the external front, the US stock market ended slightly higher last Friday, with the Dow Jones Index rising 0.48 percent and S&P500 strengthening 0.06 percent. However, the Nasdaq Index fell 0.59 percent.

In regional markets on Monday morning, the Nikkei Index opened 165.34 points higher, up 0.71 percent, at 23,571.83; the Hang Seng Index jumped 92.82 points, or 0.38 percent, to 24,596.13; and the Straits Times Index fell 1.4 points, or 0.06 percent, to reach 2,488.69.  

EDITED BY INERelated news: IHSG gains on PSBB re-imposition, COVID-19 vaccine optimism

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