JAKARTA: The unexpected decision to put Indonesia’s capital back into a tougher lockdown has surprised analysts and investors and threatens to prolong the recovery of South-East Asia’s largest economy.

With Jakarta accounting for around 20% of the country’s GDP, the decision could cause the Indonesian economy to contract for a third consecutive quarter, upsetting an earlier expectation for a recovery in the tail end of the year.

Jakarta will require non-essential industries to have employees work from home, limit use of public transportation and shut entertainment sites and places of worship from Sept 14.

Hospital capacity in the capital will max out by Sept 17 as coronavirus infections in the metropolitan area surged.

The Jakarta Composite Index plunged as much as 5%, triggering a circuit breaker that will be lifted at 11:06am local time.

While the gauge is set for its steepest drop since March, it’s still up 24% from its March low but down 22% on the year.

“From a public policy perspective, this is a dilemma between choosing science or public health over the economy.

“The decision will be incrementally negative for equities, which generally have some dependence on future earnings.

“The bond market, especially sovereign issuance, will suffer only a limited impact as it has some safe haven features.

“The hope of an upcoming vaccine and possible economic recovery in developed markets will make the fallout from the current curbs less severe than what the country had seen in March, ” said Jeffrosenberg Tan of Sinarmas Sekuritas.

Maybank Kim Eng Isnaputra Iskandar said “I think we will see negative GDP growth in the fourth quarter instead of what many people expected earlier for a recovery in the final three months of 2020.”

The impact on the financial market will be widespread, and at the time like this “investors should not try to catch the falling knife.”

After the initial carnage, some investors may seek refuge in medical stocks, gold miners, tower companies or consumer related names such as tobacco, and telecom stocks.

Stocks that might be less affected by the curbs are Mitra Keluarga, Merdeka Copper Gold, Sarana Menara Nusantara, Tower Bersama, Indofood CBP, Telekomunikasi Indonesia, Unilever, Hanjaya Mandala Sampoerna as well as Gudang Garam.

- Bloomberg

I am not complaining about the current glove sliding "pandemic" bcoz I can buy what I couldn't one month ago. Thanks for the FEAR FACTOR

I am not complaining about the current glove sliding "pandemic" bcoz I can buy what I couldn't one month ago. Thanks for the FEAR FACTOR

Olang bull, dia x bull. Olang bear, dia ikut....tak malu ker

Too cheap now. Dato Karim also kenot resist. Buy back

Dato Yek bagi signal again....

Modify to follow SCIB style

Itu LKL yang jual katil to hospital pun Naik Gila when announced supplying gloves contract. They also don't have any gloves production facility. Nexgram you tak malu ker.....still sleeping at this level for so looooong

Why CEO disposed of one mil shares when he is privy to the QR?

Galaxy made tonnes of $$ within such a short period. Thanks to those who chase yesterday and probably today coz their entry price was ard 16-17. All insiders making $$

A new month, a new beginning and a new chapter for NG

Nanyang, stop all the crabs. Once it is up, u adjust your TA to up. Next day when it dropped, u change your TA immediately to down. What kind of TA are you giving.

More projects give more earnings visibility

Ally, still got news on split ex-date..

Cantik!!! Secured new EPCC project for RM193m in Nepal.

Announcement during lunch break?

Got project ker?

GP making QR loss is NOTHING NEW. Mr market dah biasa with it...no impact tomolo

Hope your dream becomes reality

Hopeforthebest, my guess is Maria pushing out NG shares to syndicate for char kway dell later. Dun forget Maria still can ride the bullet train when it moves by converting the remaining entitlement at 2sen. Win-win for Maria. Sometimes u gotta share your cake now in order to enjoy a more delicious cake later

Split coming.......

https://klse.i3investor.com/blogs/thematicfocus/2020-08-22-story-h1512480066.jsp

MZM is a good guy. Unlike those always chanting negative chi over here. For example, OKU and the magician.

Better than MFCB who is highly geared.

My guess is it will explore next month. Then, Dato will sell some for pocket money

Last 15min, buyers makan quite a fair bit.
More to come.......

Dato Yek bagi signal lagi

Si Maria is the one that convert 300m shares. Last time punya converted shares pun ada baki lagi...9.9m.shares

Next catalyst....split

"Gram" is the bad word here. Boh Dai Chi....gram only.

NexBOOM

MZM2511, if they really want, they can definitely make NG to next level even base is larger. Some other pennies like AT n Lambo also can jalan

Cantik, RM7.3mil profits even during very bleak period (MCO)

Noon today?

Operator cuti tiap-tiap hari ....
Itu SOLUTION announced set-up co for Vaccine dah Naik GILA

Monde, thanks for your research into their Indon venture. At least we know the co is serious in the medical biz and not just one-night-stand kinda venture.
Guys, what is the key "ingredient" for Covid-19 virus? It's HUMAN, and Indon has such high population.....
NG is at the brink of transformation to a more reliable company. Forget about all the past and court case (all history).
Tuan Haji will run this biz ethically and they dun even fanned-up current medical venture to the market to create frenziness. Let the QR speaks for itself...
Sept would be the month to reap the Durian

Halo upxeunft, those items are capital investment la...not PnL item

DR, I respect your consistency and patience with this stock.
Sometimes, i also beh tahan with this turtle....

Ally, izzit SD?

Ally, look forward to your sharing of hidden gem

Scare u off until no wear underwear, then it will come again

Very much the modus operandi of CBL

This fella macam kena black magic....Bull sudah 4months dah, still a penny. Really challenge your nerve

Celaka punya Maria...

Seriously, the BOD sud consider change the co name. It has been downhill since the previous management itchy hand change to current name

Lazy stock...very tiring

Another ding dong day.....

Mana ada rumours. NG announced actual deal. B4 that also no goreng...

Look at today's date: 18-8

OKU sudah bagi hint.....ini kaunter UMNO