Indonesia Stock Exchange Continues Strong Growth on Monday
Various reasons explain why Indonesia's main stock index (IHSG) managed to reach another record high on Monday (20/05/13) at 5,214.98 points, an 1.35 percent gain. Foreigners were back chasing Indonesian stocks (particularly blue chips), Asian indices were up (led by Hong Kong's Hang Seng Index), the listing of Bank Nationalnobu (NOBU) which gained 14.67 percent on its first trading day, positive European openings, and the positive response towards Indonesia's new Finance minister, Chatib Basri, regarded as an independent policy maker.
The IDR rupiah gained slightly as it was supported by the country's rising stock index and foreign asset purchases. The inflow of funds resulted in more domestic trust in the rupiah. However, the gain was limited as investors want to wait for more certainty regarding Indonesia's subsidized fuel price rise and the next meeting of the central bank of Japan.
| Source: Bank IndonesiaMost Asian stock indices were up after Japan's utility stocks rose as market participants responded to the plans to restart nuclear power plants and requests for gas supplies to several American companies. Increased US consumer confidence and US leading index also contributed to positive sentiments regarding Japanese exporters.
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