10 May 2022 (closed)
Jakarta Composite Index (6,819.79) -89.96 -1.30%
USD/IDR (14,146) -6.00 -0.04%
EUR/IDR (17,335) +57.05 +0.33%
There were two options with regard to today's trading day (Monday 17 March 2014). First, the Jakarta Composite Index (Indonesia's benchmark stock index also known as IHSG) could rise further after its impressive 3.23 percent jump last Friday (14/03), and secondly, the bullish market could become vulnerable to profit taking as the 'Jokowi effect' tones down and no other factors could trigger positive market sentiments. It turned out to be the second option. Not even sharp rupiah appreciation could push the index in the green zone.
Most of the day, the index moved sideways in the green zone. However, at the end of the trading day, the Jakarta Composite Index had fallen 0.05 percent to 4,876.19 points.
Asian stock indices were mixed on Monday. China was up on government's plan to widen the transportation networks and infrastructure in the cities. However, political tensions in Ukraine (after the disputed referendum in which almost all people voted for split from Ukraine) rose between the West and Russia.
The Indonesian rupiah exchange rate appreciated sharply today as it felt the impact of the 'Jokowi effect'. This led to capital inflows as market participants believe that - if Joko Widodo (popularly known as Jokowi) will become president of Indonesia in the July 2014 election - he will focus on infrastructure, construction and healthcare.
• Jokowi Candidate for Indonesian Presidency; Markets React Positively
• The Jokowi Effect: Indonesia's Financial Markets Gain on Political Certainty
• Bank Indonesia Keeps Benchmark Interest Rate (BI Rate) at 7.50% in March