Jakarta Composite Index (IHSG) Gains 0.43 Percent amid Mixed Asian Markets
After two consecutive days of decline, the Jakarta Composite index (IHSG) had no intention to continue its fall. Indonesia's main index was able to rise 0.43 percent to 4,999.75 points on Monday 29 April 2013. Stocks that had been weakening in recent days were popular among investors. Moreover, both Asian stock indices and foreign net purchases of Indonesian stocks supported Indonesia's index, although it fell short of reaching the psychological boundary of 5,000 points.
The IDR rupiah movement was flat as market participants were still waiting for the government's decision to increase the price of Indonesia's subsidized fuel, as well as the statement from the Finance Ministry regarding inflation projections for this year (that might be higher than previously estimated), and which might be an incentive for Indonesia's central bank (Bank Indonesia) to increase its benchmark interest rate (BI rate). Moreover, the International Monetary Fund (IMF) revised down its projection for economic growth in the Asia Pacific region to 5.7 percent in 2013 (from a projection of 5.9 percent in October 2012). The IMF also warned for the region's overheating as many funds have entered in 2012 and 2013.
| Source: Bank IndonesiaAsian stock indices were mixed but with a rising tendency, except for the Nikkei and Shanghai index that were both closed due to public holidays. Positive market sentiments were provided by South Korea's rising current account and by speculation that Asia's central banks will ease monetary policy as economic data does not show significant economic growth yet. Moreover, a number of companies posted good corporate performances in the first quarter of 2013 and thus supported Asian indices. These companies include ZTE Corp, Westpac Corp, and CapitalLand Ltd. Hong Kong's Hang Seng Index fell, however, after industrial companies released profit figures that did not meet expectation (such as Jiangxi Copper Co, China Coal Energy Co, and Tianneng Power International Ltd).
‹ Back to Indonesia Stock Exchange