Indonesia's Benchmark Stock Index (IHSG) and Rupiah Continue Its Fall
On Thursday (22/08), Indonesia's main stock index (IHSG) was not able to continue the rebound that occurred yesterday when the country's biggest pension fund, Jamsostek, began buying blue-chip stocks in a move to support the ailing index. Indonesia's benchmark index has now lost about 20 percent since its record peak in May 2013. Today, it fell 1.11 percent to 4,171.41 points. Eight sectoral indices weakened, of which the top losers were construction (-5.78 percent), basic industry (-3.42 percent), and finance (-2.39 percent).
Market players are eagerly waiting for the next inflation figures to see whether inflation will moderate or stay at the current high level (8.61 percent year on year).
The Indonesian rupiah continued to weaken against the US dollar. The Federal Reserve's minutes, which were released yesterday, seem to indicate that there is sufficient support for a gradual phasing out of the Fed's quantitative easing program towards the end of this year. If indeed winded down, it will mean that the US dollar will become stronger as less dollars enter the market.
| Source: Bank Indonesia‹ Back to Indonesia Stock Exchange