Most Asian Stock Markets Rise Ahead of Valentine's Day
The upward movement of American and European stock indices yesterday, brought on due to positive internal sentiments in both regions, provided good support for Asian stock markets today. Apart from foreign influences, Asian stock markets were also supported by company reports that showed good corporate results in 2012. As such, the Indonesia Stock Exchange (IHSG) also joined the green wave of Asian stock markets, and set a new record high.
During today's trading day, the IHSG reached its highest level (4586,98) in the middle of session two, and its lowest level (4551.42) at the start of session one. At the end of the day, it closed at 4571.57, a 0.51 percent improvement. Trade volume and total value of transactions increased with foreign investors mostly buying Indonesian stocks and domestic market participants mostly selling their assets.
The IDR rupiah, however, weakened due to the current global fear of a currency war. Ahead of the G7 meeting at the end of this week, participants want every currency's value to be based on market demand. This in reference to the case of the Japanese yen, which weakened significantly recently and ignited criticism from various countries (i.e. USA, Europe, China and South Korea). Also, the G20 group of economies expressed its concern about the influence of a weak yen on economic development because it reduces the competitiveness of companies in foreign countries. Regarding the euro, president of the European Central Bank - Mario Draghi - said he did not think it was overvalued, but in line with European fundamentals, despite harsh criticism from France.
Asian stock indices that gained today were partly driven by good corporate results of the Commonwealth Bank of Australia, Leighton Holdings Ltd, and various companies in South Korea. Only the Nikkei index went down, partly due to a rising yen. Of the 299 companies listed in the MSCI Asia Pacific index, 53 percent have reported to have exceeded its profit target of 2012.
If we take a look at the IHSG movement during the last four years, there is a certain pattern visible in the days around Valentine's day. On the two days before Valentine, there is usually strong growth, while the two days after Valentine show limited growth. This trend may be continued tomorrow.
| Year | H-2 | Δ% | H-1 | Δ% | Valentine | H+1 | Δ% | H+2 | Δ% |
| 2009 | 1,324.82 | 1.05 | 1,325.42 | 1.00 | 1,338.74 | 1,342.00 | 0.24 | 1,318.04 | 1.55 |
| 2010 | 2,483.44 | 2.04 | 2,507.75 | 1.05 | 2,534.14 | 2,517.46 | 0.66 | 2,558.50 | 0.96 |
| 2011 | 3,373.64 | 1.28 | 3,391.77 | 0.74 | 3,416.77 | 3,416.78 | 0.00 | 3,434.38 | 0.52 |
| 2012 | 3,912.39 | 1.03 | 3,961.90 | 0.23 | 3,952.82 | 3,953.04 | 0.01 | 3,927.61 | 0.64 |
| 2013 | 4,548.24 | 1.00 | 4,571.57 | 0.51 |
Top Movers – Wednesday 13 February 2013
| Company | Change |
| • Bumi Teknokultura Unggul |
24.24% |
| • Sunson Textile Manufacture | 23.76% |
| • Star Pacific |
17.81% |
| • Saham Seri B Hanson Internation | 11.54% |
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