Positive Global Stock Markets Push Indonesia Stock Exchange to New Record
Apparently, yesterday's decline was only a small stumbling block for the Indonesia Stock Exchange (IHSG). Indonesia's main indicator rebounded strongly after feeling the effects of stronger American stock indices that were positively influenced by a rise in Housing Index and Consumer Confidence. Moreover, the IHSG accelerated its gain after Asian stock markets and the opening of Europe's stock indices were positive.
The IHSG reached a new record-high level of 4,716.42, an 1.14 percent increase. During today's trading day, the index reached its highest level (4,721.86) just before pre-closing, and its lowest level (4,674.08) at the start of session one. Trade volume and total value of transactions increased. Foreign investors mostly bought Indonesian assets, while domestic market participants mostly sold theirs.
The IDR rupiah strengthened after Indonesia's bond auction was oversubscribed from a targeted IDR 7 trillion (US $725 million) to become IDR 7.6 trillion (US $788 million). This indicates that investors have faith in the Indonesian currency, despite inflationary pressures, the trade deficit and political turmoil. The rupiah also gained due to the Federal Reserve's statement to continue its bond buying program. Similarly, the Bank of England provided room for more monetary stimulus to boost the economy.
Asian stock markets rebounded but Japan's Nikkei weakened after the yen gained. The Yen's gain was brought on by a weakening Euro due to higher Italian bond yields.
Top Movers – Wednesday 27 February 2013
|• Centris Multipersada Pratama
|• Leo Investments
|• Saham Seri B Hanson Internation||11.54%|
|• Kabelindo Murni||10.37%|
|• Inter Delta
|• Leyand International
|• Fast Food Indonesia
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