Global Optimism Results in Another Record for the Indonesia Stock Index (IHSG)
Positive moving stock indices in America and Europe on Tuesday (responding to various good corporate Q1-2013 data) were able to offset negative influence caused by weak manufacturing data from China and Europe. As a result Asian indices rose on Wednesday, including the Indonesia Stock Index (IHSG) which managed to reach beyond the psychological boundary of 5,000 points. The index ended at the level of 5,011.61, a 0.73 percent gain compared to the previous trading day.
However, as the IHSG is currently still considered being "overbought", part of the investor community decided to sell their stocks. Therefore, when European stock markets opened promising on Wednesday, it had no real effect on the IHSG's performance.
The IDR rupiah gained slightly due to positive market sentiments that were brought on by a maintained benchmark interest rate of New Zealand at 2.5 percent, as well as Australian monthly and annual inflation that turned out lower than expected. Moreover, weak German Ifo Business Climate Index and Italian monthly Retail Sales pressured the Euro.
Asian stock indices were mostly rising due to spill-over effects from US and European stock indices. Various good corporate quarterly results supported optimism that global recovery is indeed happening. Technology and telecommunication stocks in China rebounded (moreover Goldman Sachs were bullish on Chinese stocks). In Japan, the weakening Yen strengthened stocks of exporters.
‹ Back to Indonesia Stock Exchange