Both foreign and domestic investors recorded a net buy, which led to the 1.02 percent rise of the IHSG to 4,699.73 points. Trade volume rose, while total value of transactions fell.

The Indonesian rupiah continued its weakening trend against the US dollar. Market participants expect that if Bank Indonesia will not raise its benchmark interest rate in tomorrow's (15/08) board meeting, the rupiah will continue to weaken. The weakening of the rupiah is also caused by Japan's depreciating Yen (against the US dollar) after US retail sales were still positive and thus increased expectation that the Federal Reserve's quantitative easing program will end (which will translate into a stronger US dollar).

| Source: Bank Indonesia

Asian stock markets were mixed on Wednesday (14/08), partly because of a heavy storm in Hong Kong that disturbed trade as well as various businesses. Investors are also worried that the storm may impact on the pace of China's economic recovery. Japan's Nikkei is still up as prime minister Shinzo Abe may cut taxes for companies.

Bahas