Recovery Continues: Indonesia's Stock Index (IHSG) Gains 1.92%
Asian stock indices were up on Thursday (27/06) after economic growth of the United States in Q1-2013 was lower than expected. Paradoxically, this had a positive effect on global stock indices as speculation arose that the disappointing growth rate would convince the Federal Reserve to continue its quantitative easing program. It also had a good affect on Indonesia's main stock index (IHSG), which gained 1.92 percent and ended at 4,675.75. The index was well on its way to close a gap (at 4,743-4,801) but was blocked by mixed European openings.
One interesting note is that foreign investors were net buyers of Indonesian stocks today. For a long time, foreigners sold more stocks than they bought. In contrast, domestic investors were mostly selling their assets today.
The IDR rupiah was slightly up against the US dollar, supported by a stronger Australian dollar (AUD) as market players were positive about Kevin Rudd becoming the new prime minister of Australia, and because of an appreciating Won as South Korea's current account experienced a surplus.| Source: Bank Indonesia
Asian markets were mostly up. Lower than expected economic growth in the United States resulted in positive market sentiments as it may convince the Federal Reserve not to stop its stimulus program soon. In that context, investors were bargain hunting undervalued stocks today. Moreover, investors were less worried about the credit crisis in China after China's central bank reassured the market by providing more liquidity.
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