Today, the Indonesia Stock Exchange (IHSG) had to give up its upward movement. Indonesia's main indicator, that moved in the red zone during the whole day, was affected by profit taking, and although on previous occasions the index successfully passed beyond the forming of a 'shooting star', today it failed. Its movement further away from the upper bollinger band led to the assumption that the IHSG will test its next support level.
During Tuesday's trading day, the IHSG reached its highest level (4,618.70) at the start of session one and its lowest level (4,581.52) just before pre-closing. In the end, it stood at 4,602.06, a 0.22 decline compared to Monday. Trade volume and total value of transactions increased, partly due to the negotiated transaction of Matahari Putra Prima stocks. Foreign investors mostly bought, while Indonesian investors mostly sold their Indonesian assets.
The IDR rupiah declined as there was no decision made by the G20 to halt the pace of the weakening Japanese yen. It means the G20 agree to a weak yen and does not consider it to be a threat. The International Monetary Fund (IMF) also said it is not too concerned about the matter and thinks an outbreak of a global currency war is exaggerated. The weakening of the rupiah was also caused by the speech of the president of the European Central Bank (ECB), who said that there were still risks concerning Europe's economic recovery. Both the central bank of Japan (BOJ) and the central bank of Australia (BOA) will continue its easing monetary policy, which affects Asian currencies, including the Indonesian rupiah.
Asian stock markets were mixed with a declining trend after stocks in the agriculture and property sectors experienced a decline. The Australian Securities Exchange gained due to the central bank's easing monetary policy.
Top Movers – Tuesday 19 February 2013
|• Kedaung Indah Can
|• Jakarta Kyoei Steel Works||22.22%|
|• Bakrie Sumatra Plantations||14.71%|
|• Rukun Raharja||11.43%|
|• Inti Agri Resources
|• Lamicitra Nusantara|| 12.00%