Indonesia's IHSG Stock Index Falls Slightly on Wednesday amid Profit Taking
Without any real negative global reasons, Indonesia's benchmark stock index (IHSG) was down 0.20 percent to 4,349.42 points. Apparently, market participants were looking for profit taking after the index rose sharply in the last couple of days. There may also have been the psychological influence of the gaps at 4,191-4,225 and 4,072-4,102 that still need to be closed. Will the IHSG close these? Compared to the general upward trend of Asian indices, it seems strange if the IHSG would deviate from this trend only to close the gaps.
Again, foreigners were net buyers of Indonesian stocks, while domestic investors sold more stocks than they bought.
The Indonesian rupiah, which previously appreciated, fell again after its value did not change on the offshore, non-deliverable forward (NDF) market (against the US dollar). The weakening of the currency was also caused by speculation that Indonesia's central bank is letting its currency depreciate in order to support exports. This policy has a positive impact on the current account deficit, which has been a concern for investors.| Source: Bank Indonesia
Asian stock indices were up at the start of Thursday's trading day (11/09) but ended mixed. Technology and commodity stocks fell after it was reported that the USA will postpone its invasion in Syria. This decision triggers not only a lower crude oil price but also brings down other commodity prices. Moreover, part of the investor community preferred to cash in profits after the Asian indices had risen recently. Positive market sentiments were caused by the increase in Australia's consumer confidence and the lower unemployment rate of South Korea.
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