As several Asian stock indices rebounded on Wednesday (07/01) Indonesia’s benchmark Jakarta Composite Index (IHSG) was able to rise as well. Investors purchased Indonesian blue chips which were considered relatively cheap after two days of decline. However, this may be speculative (short-term) buying as there are still no real domestic or foreign factors that can provide structural support. As such, there is a real possibility that Indonesia’s benchmark index will be back into red territory tomorrow.
Over 8.3 billion Indonesian shares - valued at a combined IDR 5.7 trillion (USD $449 million) - were traded on Wednesday on the Indonesia Stock Exchange (IDX). Meanwhile, foreign selling eased with foreign investors selling only IDR 3 billion more shares than they bought (compared to foreign net selling of IDR 440 billion on the previous trading day).
The Jakarta Composite Index rose 0.74 percent to 5,207.12 points on Wednesday.
Jakarta Composite Index - IHSG:
Shares of property developer Agung Podomoro Land rose 16.7 percent to IDR 419 after its subsidiary (Muara Wisesa Samudera) announced it had obtained permits for a land reclamation project in North Jakarta.
Stock Quote Agung Podomoro Land - APLN:
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.58 percent to IDR 12,732 per US dollar on Wednesday (07/01).| Source: Bank Indonesia
The government’s ten-year bond yield declined slightly to 8.0278 percent from 8.0569 percent according to data from the Indonesia Bond Pricing Agency.
For an analysis of today’s rupiah performance see this column: Currency Update: Indonesia’s Rupiah Continues to Weaken against US Dollar