20 January 2020 (closed)
USD/IDR (13,658) +4.00 +0.03%
EUR/IDR (15,150) -1.03 -0.01%
Jakarta Composite Index (6,245.04) -46.61 -0.74%
Rising American stock indices on Wednesday provided solid support for stock indices around Asia the following day, including Indonesia's main index (IHSG). Amid this global positivity, market players were eager to add stocks to their portfolios. News from Japan, China and the Indonesian central bank's announcement to maintain its low benchmark interest rate were well-received, particularly by domestic market players. It made the IHSG rise to 4,924.26, a 0.96 percent gain.
The IHSG's trade volume and total value of transactions decreased with foreign investors still recording a net sell, while domestic investors were mostly buying Indonesian assets.
The IDR rupiah continued its strengthening trend as the US dollar was weakened by market players' response towards the statement of the FOMC that signaled that the Federal Reserve will maintain its bond-buying program until the economic recovery has reached its target. However, the gain of the rupiah was limited as market participants are of the opinion that the Indonesian central bank's (lack of) policy response towards the country's higher inflation is not sufficient. Yesterday, Indonesia's central bank announced to maintain its key benchmark policy rate at 5.75 percent.| Source: Bank Indonesia
Asian stock indices were mostly rising, supported by technology and financial stocks after Taiwan Semiconductor Manufacturing Co - the world's largest electronic chip producer - reported sales above estimates. Moreover, the reported increase in Chinese bank loans and increased monthly Machinery Orders from Japan added optimism. South Korea's Kospi gained amid political tensions after the central bank maintained its policy rate at 2.75 percent. The Chinese index, however, was dragged down by commodity producing companies after commodity prices weakened again.