COVID-19 concerns drag down IHSG

 

Jakarta (ANTARA) – The Jakarta Composite Index (IHSG) ended lower on Monday amid concerns over the spread of COVID-19, particularly the new strain of the virus, which has resulted in several countries reimposing lockdown measures.

The index of the Indonesian Stock Exchange (BEI) fell 48.56 points, or 0.77 percent, to reach 6,258.57, while the index of the 45 most liquid stocks (LQ45) dropped 3.63 points, or 0.37 percent, to touch 987.95.

“In general, the market is worried about the new variant of COVID-19. In fact, several countries have again imposed a lockdown policy,” Bina Artha Sekuritas analyst Nafan Aji said in Jakarta on Monday.

In the meantime, the government’s policy to extend restrictions on the movement of people in Java and Bali has contributed to the negative sentiment in the market, he added.

The spike in COVID-19 cases has also served as a negative catalyst in the market, he noted. According to the COVID-19 Response Task Force, Indonesia reported 11,708 new COVID-19 cases on Sunday, taking the total tally to 989,262 since March, 2020, when the country reported its first infections.

On the other hand, the number of people recovering from the infection rose by 7,751, bringing the total tally to 798,810.

Shortly after opening higher on Monday, the IHSG fell and remained in the red until the close of trade.

Stocks in seven sectors recorded a correction, with the industrial sector deepening its slide by minus 3.73 percent, followed by the energy sector and the property and real estate sector, which fell 2.19 percent and 1.94 percent, respectively.

Meanwhile, stocks in three sectors rose, led by the non-primary consumer goods sector, which rose 3.91 percent, followed by the financial sector and the technology sector, which gained by 3.17 percent and 2.83 percent each.

Monday’s trade posted net foreign buys of Rp172.52 billion.

A total of 1,267,815 transactions were recorded during the day, with 16.68 billion shares, worth Rp17.05 trillion, changing hands. Meanwhile, 123 shares rose, 383 shares fell, and 128 shares remained unchanged.

In the Asian regional markets, the Nikkei Index climbed 190.84 points, or 0.67 percent, to reach 28,822.29; the Hang Seng Index added 711.16 points, or 2.41 percent, to touch 30,159.01; while, the Straits Times Index fell 18.66 points, or 0.62 percent, to 2,972.87. (INE)

 

 

Source: Antara News

 

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