The rise of the Indonesia Stock Exchange (IHSG) at the start of today's session was not sustained. It disappointed market participants who were hoping that Indonesia's main index would continue its upward movement supported by strengthening American and European stock indices after it became known that Cyprus will stay in the Euro-zone and the Federal Reserve will continue its bond-buying program.
9 December 2019 (closed)
USD/IDR (13,982) -60.00 -0.43%
EUR/IDR (15,630) -13.72 -0.09%
Jakarta Composite Index (6,193.79) +6.92 +0.11%
Indonesia Investments' Stock Market Update section contains a daily analysis regarding the performance of the Indonesia Stock Exchange (Bursa Efek Indonesia, abbreviated BEI). Our updates discuss the underlying factors - both national and international - that influence the performance of the Indonesian stock market. The indicator that is discussed most in these columns is the Indeks Harga Saham Gabungan (IHSG). This IHSG is an index of all listed stocks and thus forms the main indicator of the BEI.
This section has been discontinued. Daily updates on the performance of the Jakarta Composite Index (Indonesia Stock Exchange) are now presented in our Today's Headlines section.
Despite global concerns, the bailout issue in Cyprus did not push Asian stock markets - including the Indonesia Stock Exchange (IHSG) - further in a downward spiral. From today's rebound of Asian stock indices we can conclude that market participants were optimistic after the meeting of the Cyprus parliament. Previously, panic emerged as imposition of fees to depositors was announced, although it is still planning only and not in effect yet.
We had hoped for a continuation of the Indonesia Stock Exchange (IHSG)'s rebound after forming a green candle. It failed, however, due to negative market sentiments brought on by the bailout of Cyprus. Also, selling pressures on American stock markets late last week blocked a potential longer rally. The IHSG felt the impact of the Dow Jones Industrial Average (DJIA) that fell after a weaker NY Empire State Manufacturing Index as well as Consumer Sentiment.
The Indonesia Stock Exchange (IHSG) rebounded after receiving support from positive American stock markets due to a fall in US jobless claims. American stock markets also influenced most other Asian stock markets in a positive way. Despite the fact that most foreign investors engaged in profit taking by selling Indonesian assets, the IHSG managed to gain 0.69 percent to the level of 4,819.32. Trade volume decreased, while total value of transactions rose.
The views expressed in these financial columns are the views of the authors or the interviewed persons only and therefore do not necessarily reflect the views of Indonesia Investments. The authors are free to ventilate their opinions about the Indonesian financial markets. Facts presented in these columns are the result of the author's own research or indicated sources. The content of these articles should not be regarded as investment advice, read disclaimer.