Overall, foreign investors recorded a net sell on Tuesday on the IHSG. However, their net purchase of some large cap stocks (Telekomunikasi Indonesia and Bank Mandiri) supported the index. During the day, Indonesia's main indicator moved sidewards but the positive openings of European stock indices on Tuesday lifted the IHSG into a small plus. It rose 0.04 percent to end at 4,899.59 points.

The IDR rupiah rebounded slightly after the Federal Reserve stated to extend its bond-buying program. The euro joined this strengthening path, partly for the same reason, but also due to Germany's better than expected trade balance and UK's increased monthly Industrial Production. The Australian dollar was supported by Australia's higher Business Confidence and China's lower March inflation rate. Both these matters also supported the rupiah.

| Source: Bank Indonesia

China's lower inflation rate in March (2.1 percent, down from February's 3.2 percent when China's Lunar New Year had pushed up prices) supported Asian stock indices as market players consider this will encourage China's government to refrain from tightening its monetary policy. Also, the positive performance of Alcoa Inc, America's largest aluminum producer provided support for other mining stocks (such as BHP Billiton, Rio Tinto Group, Jiangxi Co).

Bahas