Indonesia Stock Exchange (IHSG) Sets a New Record High Again
A continued positive movement of the Nikkei index provided good support for the Indonesia Stock Exchange (IHSG) on Tuesday's trading day. Many Asian stock markets have not opened yet after the Chinese new year and therefore the Nikkei became the reference for the performance of the IHSG. Apart from the influence of the Nikkei, many Indonesian company reports that were published today, had a positive effect on the IHSG, resulting in a new record high.
During today's trading day, the IHSG reached its highest level (4548.54) just before pre-closing and its lowest level (4503.56) at the start of session one. At the end, it stood at 4548.24, an 1.00 percent increase. Trade volume and total value of transactions increased, with foreigners mostly buying Indonesian stocks while domestic investors mostly sold their Indonesian assets.
The IDR rupiah gained as market participants likened Indonesia's central bank's plan to support the formation of a reference-to-rupiah exchange rate in the domestic spot market. This has been common in Singapore and aims to increase liquidity of the US dollar within the country in order to create a forward market. Bank Indonesia also announced that the key interest rate (BI rate) as well as the interest rate of the central bank’s deposit facility (Fasbi) would be kept at 5.75 percent and 3.75 percent respectively.
The Nikkei was positively influenced by a statement of the governor of Japan's central bank (BOJ) that this year will see increased monetary easing to end deflation. Moreover, both the Household Confidence and Machine Tool Orders surveys of Japan made a positive impact. The stock index of South Korea (Kospi), however, weakened after news that its northern neighbor is engaged in nuclear tests.
The meeting of Europe's finance ministers and the nuclear tests of North Korea will affect the movement of European indices today. Apart from that, market participants will also wait for the management reshuffle at Barclays and for a number of specific reports that will be published in England such as, CPI, Price Producer Index, and the House Price Index.
Top Movers – Tuesday 12 February 2013
| Company | Change |
| • Tigaraksa Satria |
25.00% |
| • Centrin Online | 21.74% |
| • Lamicitra Nusantara |
19.40% |
| • Panca Global Securities | 14.29% |
| Company | Change |
| • ATPK Resources |
17.07% |
| • Leyand International |
7.39% |
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