Indonesia's Stock Index (IHSG) Slightly Up after Release US Data
Higher American indices after the release of ADP employment change and lower initial jobless claims made an indirect impact on Asian stock indices, including Indonesia's main stock index (IHSG) on Thursday (04/07). Investors used the positive outcomes of these data to start purchasing stocks, although in limited quantities. Foreign investors, however, are still selling more Indonesian shares than they buy, which subsequently results in limited growth of the IHSG on Thursday (04/07). The index grew 0.10 percent to 4,581.93.
The IDR rupiah continued its depreciating trend against the US dollar after market participants responded to the positive economic data from the United States, and which may be a valid reason for the Federal Reserve to start withdrawing its quantitative easing program gradually. Moreover, the rupiah is under pressure as capital outflow from Indonesia's stock market continues. The weakening of the euro, due to the hike in Portuguese bond yields (tenor 10 years) and geopolitical problems in the Middle East, contributed to the downward pressure on Indonesia's currency.
| Source: Bank IndonesiaAsian stock indices were mostly up because of the impact of US data, except for Japan's Nikkei, which was dragged down by manufacture and steel producer shares as well as because of the wait & see attitude of investors ahead of the release of the US unemployment rate.
‹ Back to Indonesia Stock Exchange