Indonesia's Main Index Reaches Beyond Next Psychological Boundary
The upward movement of American and European stock indices on Tuesday (28/05) made a good impact on Indonesia's main index (IHSG) on Wednesday (29/05). Despite Asian markets being mixed and the Hang Seng Index (usually the reference point for Asian indices) falling, the IHSG succeeded in surpassing the next psychological boundary at 5,200 points. Overall, foreign investors recorded a net sell but it was offset by a net buy in a number of big caps: Perusahaan Gas Negara, Jasa Marga, Indo Tambangraya Megah and United Tractors.
Indonesia's index rose to 5,200.69 points on Wednesday, a 0.46 percent increase.
The IDR rupiah did not move much compared to yesterday as the Japanese yen gained after the governor of Japan's central bank, Haruhiko Kuroda, said that stability of the financial system is needed through the stimulus program. On the other hand, the economic outlook of China has been revised down by the International Monetary Fund (IMF). This led to a weaker Chinese yuan and affected a number of other Asian currencies, including the rupiah.
| Source: Bank IndonesiaAsian stock indices were mixed, with Hong Kong's HSI falling significantly after energy stocks weakened and the IMF's lower outlook for China. The Nikkei was still up with increased retail sales providing a boost to finance, energy and retail stocks. Except for the HSI, other stock indices of China gained as the government is planning an economic reformation to spur economic growth. Negative sentiments involving the IMF's lower outlook were offset by an increase in consumer stocks due to higher consumer confidence in the USA.
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