Indonesia's Jakarta Composite Index up despite China and Rupiah Concerns
It was interesting to follow the performance of the benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) on Thursday (05/06) as it managed to enter the green zone just minutes ahead of closing. Most of the trading day, the index had been in the red zone as Asian stock indices were mostly down on concerns about economic growth in China, the world's second largest economy. Furthermore, investors are still cautiously following the recent depreciating trend of the Indonesian rupiah.
The Jakarta Composite Index gained 0.06 percent to 4,935.56 points on Thursday (05.06).
Besides concern about Indonesia's USD $1.96 billion April 2014 trade deficit, higher May 2014 inflation and political uncertainty ahead of the July presidential election, Indonesia's currency was negatively affected by the weakening Euro as investors prefer to wait & see ahead of the European Central Bank meeting.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.54 percent to IDR 11,874 against the US dollar.
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