Despite Uncertain International Context Indonesia's Stock Index Climbs 0.37%
Although the gap on 4,575-4,579 was closed, Indonesia's benchmark stock index (Jakarta Composite Index or IHSG) was given limited room to go up further as the performance of global stock indices did not support a bigger rebound. On the contrary, despite the 0.37 percent rise of the IHSG to 4,601.28 points on Tuesday (04/03), there are still pressures that may push the index down in the days ahead. Amid the political conflict in the Ukraine, Wall Street fell on Monday (03/03), which led to profit taking in the first trading session.
However, when investors saw that the Hang Seng Index and Nikkei went up in the second trading session (particularly due to further depreciation of Japan's yen), they came back to the market to purchase Indonesian stocks. Nonetheless, foreign investors still recorded a net sell on Tuesday and the rupiah depreciated again.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.44 percent on Tuesday to IDR 11,647 per US dollar. This was mainly caused by ongoing and intensifying political tensions in the Ukraine. This turns investors to safe havens, such as the US dollar.
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