Also, the Euro Group's revision of its statement related to the bailout of Cyprus was well-received by market participants. The Euro Group restated that the streamlining of the banking sector in Cyprus was aimed at strengthening the capital market in order for it to withstand the current problematic context. This statement provided confidence to purchase stocks, which was felt in Indonesia as well.

During Wednesday's trading day, the IHSG reached its highest level (4,928.10) at the end of the second session, and its lowest level (4,853.88) at the start of the first session. Both trade volume and total value of transactions decreased, with foreigners mostly buying Indonesian assets, while domestic investors mostly sold theirs.

The IDR rupiah gained slightly as fears surrounding the bailout of Cyprus are somewhat diminishing. Fitch Ratings, however, downgraded the two largest banks of Cyprus and put the country's sovereign debt rating on negative credit watch as its current banking sector can cause the domestic economy to collapse. Banks in Cyprus are still closed, and when opened, the government will put strict regulations to avert a run on banks (it is assumed that without these regulations about 40 percent of Cypriot bank deposits will be withdrawn).

Asian stock markets were influenced by the positive result of US Durable Goods Orders (which increased 5.7 percent). This result impacted positively on export stocks as it is assumed that US exporters will see a rise in sales. Other positive market news came from a number of good corporate reports (such as the Bank of China Ltd., and China Communications Construction Company Ltd.), and a rise in Consumer Sentiment Index of South Korea.

As writing this column, European stock markets were mixed with a descending trend after stocks in the telecommunication and insurance sectors fell. This situation is brought on due to market participants' profit taking after seeing the good data from the USA, while fears over Cyprus are a bit waning.

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