Indonesian stocks trim losses following trading halt lift
The Jakarta Composite Index was down 4.6% at one time, snapping a two-day winning streak
Indonesian stocks trimmed losses slightly after the exchanged lifted a 30-minute trading halt triggered by a 5% plunge.
The Jakarta Composite Index was down 4.6% as of 11:10 a.m. Jakarta time, snapping a two-day winning streak. The benchmark gauge soared 15% in two days through Friday, the best gain since 1999 as investors bet that various measures to prop up the global economy will help prevent further downside in financial markets. Asian stocks ended a four-day advance to decline 1.5%.
The number of fatalities in Indonesia increased to 114 on Sunday — the most in Southeast Asia, with total confirmed cases at 1,285. Global coronavirus cases climbed above 720,000 and a top scientist suggested that deaths in the U.S. may reach 200,000, leading equities and oil prices to fall.
Trading value was at 1.75 trillion rupiah ($107.23 million) before the halt, Laksono Widodo, director of trading and membership at the Indonesia Stock Exchange, said in a statement. This is the first trading halt since the Indonesia Stock Exchange implemented shorter operational schedule starting Monday.
Indonesia Plans First Recovery Bonds to Combat Virus Fallout.
Indonesia’s financial markets will continue to be punished by investors, following a 25 basis point interest rate cut recently, according to Anthony Kevin, economist at PT Mirae Asset Sekuritas. In short, the government’s inability to inject large fiscal stimulus will make Indonesia’s economic outlook concerning, with U-shaped recovery instead of V-shaped, Anthony said by text message on Monday.
Trading can be halted again for another 30 minutes if the index hits the 10% circuit breaker after market reopens, according to Indonesia Stock Exchange rules.