Indonesia's Stock Market Continues to Rise amid Positive Global Markets
Despite our concern that Indonesia's benchmark stock index (IHSG or Jakarta Composite Index) would be susceptible to profit taking after the national holiday on Tuesday (14/01) as the IHSG rose signficantly on Monday (13/01), it continued its rise on Wednesday (15/01). The IHSG was supported by positive Asian indices that were influenced by strong US and European stock markets after the release of positive economic data in the USA and Europe. The depreciating rupiah exchange rate, however, limited the IHSG's gain.
Indonesia's IHSG rose 1.16 percent to 4,441.59 points on Wednesday (15/01).
Asia's markets were up after indices on Wall Street were positively affected by US retail sales. Other factors that contributed to the good performance of Asian markets were Japan's increased machine tool orders and the World Bank's upward revised outlook for global economic growth (raised from 3.0 percent to 3.2 percent, thus higher than the 2.4 percent growth result of 2013). Lastly, Indonesia's raw mineral export ban triggered higher commodity prices and thus contributed to strengthening mining shares across Asia.
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