Today, the Indonesia Stock Exchange (IHSG) reached yet another new record high as most market participants used the current positive market sentiments to maintain their stock portfolios, although part of the investors also took the chance to engage in profit taking. Most Asian stock markets gained significantly which was followed by positive openings of European stock indices. Both developments impacted heavily on the IHSG.
During Thursday trading day, the IHSG reached its highest level (4,795.79) at the end of session two and its lowest level (4,734.83) at the start of session one. In the end, Indonesia's main indicator stood at 4,795.79, an 1.68 percent gain. Trade volume increased, while total value of transactions decreased. Foreign investors mostly bought Indonesian assets, while domestic market participants mostly sold theirs.
The IDR rupiah continued to strengthen after the positive effect of the Federal Reserve's statement that it will continue its monetary policy of monthly bond-buying (worth US $85 billion) and avert inflationary pressures. The rupiah was also supported by calming market sentiments surrounding the election result in Italy after Italian bond yields lowered from 5.9 percent to 5.8 percent, and hope emerged that a coalition of center and left parties could form a majority in Italy's parliament.
Asian stock markets continued their rise responding to positive American stock markets. Various companies reported good corporate results and a rise in annual Industrial Production in South Korea as well as in Japan's Manufacturing PMI were well-received by investors. Investors also likened Japan's prime minister Shinzo Abe's decision to nominate president of the Asian Development Bank, Haruhiko Kuruoda, for position of governor of Bank of Japan because it is assumed to smoothen acceleration of the stimulus plan.
Top Movers – Thursday 28 February 2013
|• Centris Multipersada Pratama
|• Century Textile Industry
|• Inter Delta||21.43%|
|• Lippo General Insurance||19.23%|
|• Nusantara Inti Corpora
|• Eterindo Wahanatama
|• Kabelindo Murni