Small Loss for the Benchmark Indonesian Stock Index on Thursday
Contrary to most Asian stock indices, the benchmark stock index of Indonesia (known as IHSG or the Jakarta Composite Index) declined on Thursday (08/05). Positive sentiments that were provided by the BI rate (Indonesia's benchmark interest rate) that was kept at 7.50% in today's Bank Indonesia Board of Governors' Meeting, and China's higher-than-expected trade balance in April 2014 (USD $18.5 billion), were offset by the depreciating rupiah exchange rate and foreign net selling of Indonesian stocks. The IHSG fell 0.02 percent to 4,860.89 points.
The strengthening of basic industries, manufacturing, and consumer stocks was not able to bring the IHSG back into the green zone.
Asian stock markets rebounded on Thursday because of China's improved trade balance; the country's export growth outpaced import growth. Australia's falling unemployement rate and the market's positive response to the results of Federal Reserve's FOMC meeting previously helped to support Asian indices.
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