Rupiah Down but Indonesian Stocks Overcome Weak Economic Data
Although initially the benchmark stock index of Indonesia (known as Jakarta Composite index or IHSG) fell after the market responded to today's release of Indonesia's April trade deficit and May inflation, the index ended in the green zone due to foreign net buying and general positive Asian indices (influenced by higher stock indices on Wall Street at the end of last week). Particularly Indonesia's big cap stocks in the miscellaneous industry and consumer sectors were popular as these were relatively cheap after having tumbled at the end of last week.
The Jakarta Composite Index rose 0.37 percent to 4,912.09 on Monday (02/06).
Asian stock indices were mostly up as the Japanese yen continued to depreciate after investors responded positively to Japan's higher markit manufacturing PMI. Furthermore, South Korea's balance of trade improved (better than expected) while China's NBS manufacturing PMI rose slightly.
The Indonesian rupiah exchange rate, however, put some pressure on the IHSG as it depreciated sharply after the release of inflation and trade data on Monday (02/06). Inflation was slightly higher than expected at 0.16 percent (month-to-month), thereby increasing on a year-on-year basis from 7.25 percent in April 2014 to 7.32 percent in May 2014. But particularly the April 2014 trade deficit of USD $1.97 billion was a major concern to market participants. This outcome was far worse than previously expected.
–
‹ Back to Indonesia Stock Exchange
Discuss
Today's Headlines
- Indonesia Investments Released Its March 2024 Report
- Renewable Energy in Indonesia: Overview, Challenges and Potential of Geothermal Energy
- Consumer Price Index of Indonesia: Finally Some Inflationary Pressures in February 2024
- Economic Update Indonesia; Taking a Look at Various Recently Released Macroeconomic Data
- Indonesia Investments Releases Its February 2024 Report