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.
@papaya.....either good or just to attract bilis to jump in,so ozura can dispose again........kikikikikikih ............................................................................
Ozura is keep waiting to dispose the shares at a higher price! Why don't we have a reason to expect that the stock price will be rising in the near future?
JAKARTA, Sept 12 : Indonesia's capital Jakarta plans to re-impose a partial lockdown as early as Monday (Sept 14) over fears that surging coronavirus cases could "collapse" its under-pressure hospitals, the sprawling city's governor said.
The megacity of some 30 million will see many office buildings and large mosques closed along with restaurants and other entertainment venues, while public transport hours will also be restricted.
The announcement comes three months after an earlier lockdown was lifted, sending infection rates soaring.
"The Jakarta administration has decided to pull the emergency brake and go back to large-scale restrictions," governor Anies Baswedan said.
Without fresh moves to contain virus cases, the capital's hospitals could be overrun as early as next week, he said.
"After that, Jakarta's health facilities would collapse," he added.
More than 100 frontline doctors in Indonesia have died of Covid-19, including 15 in Jakarta.
"That adds to concerns that our health system will collapse if there are no serious measures to control the pandemic," said Halik Malik, spokesman for the Indonesian Doctors Association.
"We can't ignore or abandon patients just because health facilities and their employees can no longer accommodate them," he added.
Indonesia's main stock index tumbled five percent after the announcement on concerns about Southeast Asia's biggest economy.
Jakarta had by Thursday recorded more than 50,000 confirmed cases -- around a quarter of the national total -- as well as more than 1,350 deaths.
But with some of the world's lowest testing rates, the spread of the disease is widely believed to be much greater than official figures suggest.
On Friday, the Health Ministry said the Covid-19 cases in Indonesia rose by 3,737 within one day to 210,940, with the death toll adding by 88 to 8,544.
According to the ministry, 2,707 more people were discharged from hospitals, bringing the total number of recovered patients to 150,217.
The virus has spread to all the country's 34 provinces.
The Board The primary role of Nexgram’s Board of Directors is to oversee how management serves the interests of shareowners and other stakeholders. To do this, Nexgram’s Directors have adopted corporate governance principles aimed at ensuring that the Board is independent and fully informed on the key strategic and risk issues facing Nexgram. Nexgram has met its goal to have one-third of its Board be independent under a strict definition of independence.
The Nexgram Board held board meetings regularly. Each outside Board member is expected to visit at least one Nexgram businesses without the involvement of corporate management in order to develop his or her own feelings for the Company. Board members focus on the areas that are important to shareowners – strategy, risk management, leadership development, and regulatory and compliance matters. During 2015, they received briefings on a variety of issues, including capital allocation and business development with a focus on Property Development, risk management with a focus on E-commerce Revolution, business simplification, emerging markets growth, leadership development, technology excellence, IT and big data security & surveillance strategy, convergence of technology & industries, global research and development strategy, and Nexgram’s branding, marketing and operating initiatives. At the end of the year, the Board and each of its committees conducted a thorough self-evaluation. Dato’ Sri Rusli Bin Ahmad Independent Non-Executive Director Chairman of the Board
Dato’ Roman Yek Siew Lee Group Managing Director, Executive Director
Haji Mazru bin Mat Yusof Group Operation & Finance Director, Executive Director
Fu Lit Fung Non-Independent Non-Executive Director
Zaharin bin Ahmad Zamani Independent Non-Executive Director
The sales of gowns (AAMI Isolation Gown 2,000,000 pieces per month) and medical gloves (K-Gloves Nitrile Examination Gloves-Powder Free 500,000 boxes per month) to Indonesia under MAPU contract will be started from Nov 2020.
Nexgram Industries Sdn Bhd (NISB) has entered into a deal to sell medical ventilators to an Indonesian firm, PT Rafa Topaz Utama, for distribution in East Jakarta and certain other parts of Southeast Asia.
Agreed. In principle NEXGRAM have a very good business and able to generate revenue and profit as well. But I believe it is too early for the price to go higher. The price from what I seen would go lower for a while and would go up later. Maybe goes down to 0.03 cents and goes up later....
Extract: Medical device provider Nexgram Holdings Bhd (Nexgram Group) is acquiring medical plastic firm Arita Plastics Industries (M) Sdn Bhd (Arita) in a move to enter manufacturing and supply of biomedical materials, life-saving medical devices, medical compounds, and personal protective equipment such as protection face shield, hospital Acrylic (PMMA) Medical Intubation boxes and gloves, and Acrylic sheets as alternative material to borosilicate glass vials for COVID-19 Vaccines.) 29/08/2020 12:13 AM 12/09/2020 11:49 PM
QR report is around the corner and Ozura's operator (if there is any) should be waiting to push the price to make sure the firm can dispose the shares at their targeted price. By the way, next week we could see the rise of glove counters. Hope glove and healthcare counters will be back as a theme play. Just my 2 cents oppinion.
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Posted by Mykingkong > 2020-09-10 14:19 | Report Abuse
Not yet..Ozura still hold many stock