On Wednesday (05/02), several factors caused a rebound of Indonesia's benchmark stock index (Jakarta Composite Index/IHSG). The IHSG climbed 0.74 percent to 4,384.31 points, thus closing the gap on 4,367-4,377. These factors were strengthening indices on Wall Street after US factory orders did not decline as much as was anticipated by the market, as well as today's release of Indonesia's 5.78 percent GDP growth figure (which was slightly higher than forecasted) and which led to an appreciating rupiah exchange rate.
Several Asian stock markets were up due to positive indices on Wall Street the previous day (04/02), except for the Hang Seng, ASX and STI. Better than expected financial results of Panasonic Corp and Toyota Motor Corp as well as the positive news regarding Hyundai Development Co after its rating was raised at KTB Securities Co contributed to positive sentiments in Asia. Of the 236 companies in the MSCI Asia Pacific Index that have already released financial results, 53 percent has exceeded expectation.
The Indonesian rupiah exchange rate experienced its second consecutive day of appreciation on Wednesday (05/02) after Statistics Indonesia released Indonesia's official 2013 GDP growth figure. Southeast Asia's largest economy grew 5.78 percent last year, slowing from a growth rate of 6.23 percent in the previous year but slightly higher than projections of analysts. Market participants were also pleased to see that GDP growth in Q4-2013 (5.72 percent, yoy) outpaced growth in Q3-2013 (5.62 percent, yoy) and that per capita GDP reached IDR 36.5 million compared to IDR 33.5 million in the previous year.
Based on the Bloomberg Dollar Index, the rupiah gained slightly (0.07 percent to IDR 12,194) but the central bank's mid rate (the Jakarta Interbank Spot Dollar Rate or JISDOR) appreciated 0.62 percent to IDR 12,172 per US dollar on Wednesday (05/02).