The European Central Bank’s decision to introduce a 60 million euro per month bond-buying program (quantitative easing) up to September 2016 - a move to boost the Eurozone economy - has caused positive sentiments in Indonesia as increased global liquidity is expected to benefit emerging markets. The benchmark stock index of Indonesia rose 1.35 percent hence hitting a new all-time high at 5,323.88 points. Meanwhile, the rupiah appreciated 0.23 percent to IDR 12,459 per US dollar based on the Bloomberg Dollar Index.

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Indonesian investment fund managers may be allowed to include foreign assets in their mutual funds (conventional and Islamic-based mutual funds), offered to investors, soon. Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan, abbreviated OJK) is currently formulating new regulations - expected to be finalized by June 2015 - that would allow to include foreign assets in an attempt to reduce risks by diversifying mutual fund portfolios. Indonesian investment managers had been requesting for this new regulation.

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Indonesian tobacco giant Hanjaya Mandala Sampoerna (HM Sampoerna), subsidiary of Philip Morris International, is studying the requirement to increase its free float ratio from (a mere) 1.82 percent to 7.50 percent. Last year, the Indonesia Stock Exchange (IDX) announced that it would force listed companies to offer at least 7.50 percent of their enlarged equity to the public. This rule will come into effect in January 2016. HM Sampoerna is the third-largest Indonesian company in terms of market capitalization (IDR 295 trillion).

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Bank Yudha Bhakti, an Indonesian commercial bank, made its trading debut on the Indonesia Stock Exchange (IDX) on Tuesday (13/01). Shares of the small-sized lender immediately soared nearly 70 percent. The bank, which is listed under the code BBYD, offered 300 million shares (11.9 percent of its equity) to the public for a price of IDR 115 per share thus raising IDR 34.5 billion (USD $2.8 million). The initial public offering (IPO) of Bank Yudha Bhakti is the first IPO on the Indonesia Stock Exchange in 2015.

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Three Indonesian companies are expected to conduct an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in the first quarter of 2015. These companies are Bank Yudha Bhakti, Mitra Keluarga and Mitra Energi Persada. Hoesen, Director of Corporate Valuation at the IDX, said that the listing of Mitra Energi Persada (an oil, gas and coal distributor) is actually a re-listing as the company had de-listed from the Exchange in 2007. The company is expected to offer 11 percent of its enlarged equity to the public.

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In terms of market capitalization, the largest listed company on the Indonesia Stock Exchange (IDX) is now Bank Central Asia (BCA). BCA, Indonesia’s second largest bank by assets, managed to surpass HM Sampoerna and Astra International at the end of 2014 with a value of IDR 320 trillion (USD $26.6 billion), or 6.1 percent of total market capitalization of the IDX (IDR 5,228 trillion). Despite tougher conditions in Indonesia’s financial sector (amid a higher interest rate environment) shares of BCA rose 36.7 percent in 2014.

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Bank Yudha Bhakti, an Indonesian commercial bank, is preparing an initial public offering (IPO) on the Indonesia Stock Exchange (IDX). The company will offer 300 million shares, or 11.9 percent of its enlarged equity, to the public and plans to raise IDR 34.5 billion (USD $2.8 million) as it offers the shares at IDR 115 per piece. The offering starts between 5 and 7 January 2015, while listing at the IDX is planned for 13 January 2015. Underwriters for the IPO are Semesta Indovest and Equator Securities.

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Gold miner Archi Indonesia, unit of the Rajawali Corpora Group, decided to postpone its initial public offering (IPO) on the Indonesia Stock Exchange (IDX) due to the sluggish global economy resulting in the weak global gold price (which is currently touching four-year lows). Archi Indonesia’s IPO was planned to be held this December and was estimated to be the largest IPO on the IDX in 2014 in terms of capital raised (roughly USD $285 million), exceeding the value of taxi operator Blue Bird’s IPO earlier this year.

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A total of six Indonesian companies are expected to conduct an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in December 2014. Today (Wednesday 03/12), shipping company Soechi Lines made its trading debut, raising around IDR 582.5 billion (USD $48 million) by offering 1 billion new shares, or 15 percent of the company’s enlarged capital, to the public. The company’s shares surged as much as 27 percent after the opening. It was the 20th company to list on the IDX in 2014.

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Indonesia’s Financial Services Authority (OJK) in cooperation with the Indonesian Bond Pricing Agency (IBPA) and the Indonesia Stock Exchange (IDX) has launched a bond index on Friday (21/11) involving government and corporate bonds that should function as a reference for the pricing and performance. This new index is called the INDOBEX and is divided into three types of indices: INDOBEX Composite, INDOBEX Government and INDOBEX Corporate. Each index has a total return, clean price, gross price, effective yield and gross yield index.

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Indonesia's main stock index (IHSG) fell 3.68 percent to 4,433.63 on Monday's trading day (08/07). This current level is the lowest level of the IHSG since 26 June 2013. Of the 473 listed companies, 263 were down, 21 were up and the remainder did not move. Most Asian indices fell due to concerns about China's credit crisis that may impact on the country's economic growth and that the positive US employment report will affect continuation of the Federal Reserve's quantitative easing program. The MSCI Asia Pacific Index fell 1.6 percent.

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Although the main stock index of Indonesia (IHSG) ended on a positive note last Friday (05/07) by rising 0.46 percent to 4,602.81, foreign investors still sold a net IDR 262 billion (USD $26.5 million) worth of shares, while the value of transactions in the regular market was only IDR 3.17 trillion (USD $320.2 million). The rise of the IHSG at the end of last week was more due to support from Asian indices that were up after the European Central Bank and Bank of England kept interest rates at 0.5 percent.

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Indonesia's main stock index (IHSG) went up 0.46 percent to 4,602.81 on Friday (05/07). The index followed the general trend in Asia, where most stock indices rose. Of all 473 listed companies on the Indonesia stock exchange (IDX), 102 rose, 140 weakened, and 113 did not move. Foreign investors are still withdrawing their money from the IHSG. Today, foreigners recorded a net sale of IDR 260.7 billion (USD $26 million). Basic industry and consumption were the sectors that provided most support for the IHSG.

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Higher American indices after the release of ADP employment change and lower initial jobless claims made an indirect impact on Asian stock indices, including Indonesia's main stock index (IHSG) on Thursday (04/07). Investors used the positive outcomes of these data to start purchasing stocks, although in limited quantities. Foreign investors, however, are still selling more Indonesian shares than they buy, which subsequently results in limited growth of the IHSG on Thursday (04/07). The index grew 0.10 percent to 4,581.93.

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Indonesia's main stock index (IHSG) took another large blow on Wednesday (03/07). The index fell 3.20 percent to 4,577.15 points as investors were worried after reading the revised outlook of the World Bank. The institution downgraded its forecast for economic growth in Indonesia in 2013 from 6.2 percent to 5.9 percent. Higher inflation, because of the recent subsidized fuel price hike, is expected to result in lower domestic consumption. The IDR rupiah posted a slight weakening to IDR 9,941.

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Weakening American and European stock indices on Tuesday (02/07), as investors mostly refrained from trading ahead of Wednesday when a number of important US economic data are released, caused negative market sentiments in Asia today (03/07). Moreover, the market responded negative towards the World Bank's July report in which the outlook for economic growth of Indonesia in 2013 was cut to 5.9 percent (from 6.2 percent). Lastly, a gap at 4,620 - 4,644 still needed to be closed.

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Indonesia's main stock index (IHSG) fell 0.86 percent to 4,777.45 on Monday (01/07) as eight of the nine sectoral indices weakened. Only Indonesia's finance index managed to post an upward movement. Several big cap stocks ended the trading day with large losses, such as Unilever Indonesia (-3.90%) or Telekomunikasi Indonesia (-3.11%). The consumption sector was one of the worst performing sectors in Indonesia yesterday as can be seen in Indofood Sukses Makmur's shares, which fell 6.80 percent.

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Last week, Indonesia's main index (IHSG) rebounded 303 points to 4,818.90. After weeks of foreign outflows, Indonesia finally experienced capital inflows again during the last two days of the week. For example, on Friday (28/06) foreigners bought IDR 960 billion (USD $97.0 million) more Indonesian shares than they sold. However, considering the full week, foreigners still recorded net selling amounting to IDR 1.02 trillion (USD $103 million). Do these last couple of days tell us that the bearish market is over? Lets take a closer look.

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For the third day in a row, Indonesia's main stock index (IHSG) made a strong upward jump on Friday (28/06). Supported by strong American and European stock indices on the previous trading day, the IHSG rose 3.06 percent to 4,818.90 points. American and European indices mostly rose on Thursday (27/06) due to various positive macroeconomic data from the USA. These economic data translated into the good performance of the IHSG and other Asian stock indices on Friday. All sectoral indices of the IHSG were reported to have grown.

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Stock indices in the United States were up for the third day in a row on Thursday (27/06). Main reason for this upward trend are various positive macroeconomic figures from the USA. The number of homes under contract to be sold (excluding new construction) grew 6.7 percent in May, while analysts had forecast growth of about 1 percent from the previous month. Personal spending, which accounts for about 70 percent of the domestic economy, grew 0.3 percent in May, while personal income rose 0.5 percent.

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