Indonesia's Main Stock Index (IHSG) Bounces Back after Two Days of Losses
The upward movements of both American and European stock indices on Friday (03/05/13) provided good support for today's performances of indices in Asia, including the Indonesia Stock Index (IHSG). After having been hit hard for two consecutive trading day's, the IHSG rebounded despite foreign investors still selling off their Indonesian stocks. Others, however, use this momentum to hunt for stocks that are now considered cheap after last week's fall.
A number of big cap stocks that were popular trading stocks today were Bank Central Asia (BBCA), Bank Mandiri (BMRI), and Unilever Indonesia (UNVR). Indonesia's lower than expected annual GDP growth in Q1-2013 did not form an obstacle as the quarterly GDP growth figure was well-received. At the end of today's trading day, the index stood at 4,991.87, an 1.35 percent increase.
The IDR Rupiah succeeded in rebounding, although narrowly as it tended to move sideways after responding to Indonesia's lower annual Q1-2013 GDP growth. This was offset by Indonesia's lower unemployment rate and increased quarterly GDP growth. The number of jobless people in Indonesia is now 7.17 million from 7.24 million in August 2012.| Source: Bank Indonesia
Asian stock indices continued their positive trend after responding to lower US unemployment and the increase in US non-farm payrolls as these figures seem to indicate that economic recovery in the USA is still on track. Asian stock indices were also supported by rising commodity and telecommunication stocks (such as Jiangxi Copper Co, China United and BHP Billiton Ltd). Other data that were well-received and supportive of Asia's indices were Australia's increase in annual retail sales, South Korea's forex reserves, and an expected increase in the value of China's exports.
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