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Today's Headlines Indonesia Stock Exchange
Indonesia's benchmark Jakarta Composite Index finished at the new all-time high of 6,167.67 points on Tuesday (19/12), up 0.54 percent from the preceding day. Meanwhile, the Indonesian rupiah appreciated 0.04 percent to IDR 13,576 per US dollar (Bloomberg Dollar Index).
Just before closing time on Thursday (30/11), the benchmark Jakarta Composite Index suddenly tumbled 1.8 percent to 5,952.14 points. Most Southeast Asian stock markets were down but Indonesia led losses, dragged down by financials and consumer staples. Indonesian stocks recorded their weakest day since November 2016.
Despite the "political year" several Indonesia-based securities firms expect to see big appetite from local companies to conduct an initial public offering (IPO) on the Indonesia Stock Exchange in 2018. In 2018, Indonesia will see a new round of regional elections (to determine local leaders) across the country. These elections are likely to trigger new political tensions, particularly as the country's legislative and presidential elections are to be held the following year.
Indonesia's benchmark Jakarta Composite Index continues its run in record high territory on Monday (06/11). While Asian stocks are mixed, overall, this morning, the Jakarta Composite Index is carefully climbing in green territory. It is interesting to note that, recently, the benchmark index is not only being pushed higher by the large-cap blue chip stocks, but also by mid-cap and small-cap stocks.
After three straight sessions of decline, Indonesian stocks are again rebounding toward record high territory. In the first trading session on Tuesday (31/10) the benchmark Jakarta Composite Index climbed 0.57 percent to 6,008.14 points, just short of the all-time record high of 6,025.43 points that was touched last week. The consumer goods index, particularly, is supporting the rise of the overall index.
Indonesia's benchmark Jakarta Composite Index touched a new all-time record high on Wednesday (25/10). More importantly, the benchmark index passed beyond the psychological boundary of 6,000 points and closed 1.23 percent higher at 6,025.43 points. This great performance was driven by Indonesia's energy and financial stocks.
Indonesian mineral mining and processing company Kapuas Prima Coal became the 27th company to list on the Indonesia Stock Exchange in 2017. The company was the top gainer at its trading debut on Monday (16/10) as its shares soared 70 percent to IDR 238 a piece. This increase touched the upper limit hence triggering the automatic rejection system.
While initial public offerings (IPOs) have rebounded in Indonesia this year, the total value of these IPOs is small. This shows that companies are still cautious amid uncertain domestic and global conditions and therefore sell a limited amount of shares at a competitive price.
For long-term investors in the stock market it is worthwhile to take a look at those listed companies on the Indonesia Stock Exchange that consistently pay a dividend to common shareholders. Recently, the Astra Group, one of Indonesia's largest diversified conglomerates announced its 2017 interim dividend payout. Several other blue chip stocks are reportedly also close to announcing dividend payouts.
There are various listed companies on the Indonesia Stock Exchange that are planning to conduct a rights issue in the second half of 2017 in an effort to generate new funds for business expansion. Samsul Hidayat, Director of Corporate Listing at the Indonesia Stock Exchange, added that some companies are planning the rights issue in order to comply with the minimum 7.5 percent free float regulation.
Latest Columns Indonesia Stock Exchange
The Indonesia Stock Exchange (IHSG) experienced a mixed week. At the start of the week, the index rose, but towards the end of the week it weakened, although ending in the green on Friday. Recently, the IHSG has hit record levels, and this makes market participants worried that the index might fall in case there emerge negative market sentiments. These concerns are what made the index turn away from the next psychological boundary: 5,000 points.
On Thursday 4 April 2013, market players were hoping that the Indonesia Stock Exchange (IHSG) would climb beyond the psychological level of 5,000. However, the presence of negative market sentiments - and the overbought condition of the IHSG - were used as reasons to engage in profit taking. It consequently pushed down Indonesia's main financial market indicator to the level of 4,922.61, an 1.18 percent fall compared to Wednesday's trading day.
Despite positive results of monthly US Factory Orders and Economic Optimism, it did not support Asian stock markets up to the end of Wednesday's trading day. The Indonesia Stock Exchange (IHSG), on the other hand, maintained its upward movement to reach 4,981.47, a 0.49 percent gain. Matters that supported the IHSG's performance to yet another new record high level, were well-received 2012 company reports as well as expected dividend payouts.
Usually, news about inflation is not well-received by market participants. Particularly when inflation turns out to be higher than expected. This time, however, something interesting happened in Indonesia. Although the country's March inflation rate was high (5.90 percent year-on-year), it was not followed up by a negative response of market players. In fact, the inflation rate seems to have strengthened the Indonesia Stock Exchange (IHSG), which gained 0.40 percent on Tuesday.
With a number of important global stock exchanges still closed due to Easter, it seemed that the Indonesia Stock Exchange (IHSG) lacked a reference point to which it could cling. It is also likely that market participants have already consumed most of the 2012 corporate company reports and are therefore not waiting for new data of listed companies. Moreover, today's announcement of the relative high inflation rate of March did not support the IHSG either.
This column is the first in a series of columns about investing in Indonesia, in particular about investing in its capital markets. These columns are written by David Sutyanto, research analyst at First Asia Capital, and - as this column is the starting point - he will provide a short and broad outline of the Indonesian capital markets for now. Later, his columns will contain topics that delve more deeply into the capital markets, such as listed companies, and much more.
Not only the upward movement of most Asian stock markets, but also a number of positive company reports (regarding corporate performances of 2012) supported the Indonesia Stock Exchange (IHSG) to reach a new record-high level of 4,928.10 on Wednesday, implying an 1.77% increase compared to the previous trading day. Moreover, American and European stock markets had ended higher on Tuesday due to positive data, thus discarding turmoil related to Cyprus.
After speculation began to spread that an agreement would be reached between Cyprus and Troika (made up of the European Union, the European Central Bank and the IMF), Asian stock markets went up, including the Indonesia Stock Exchange (IHSG). Despite foreigners' appetite for selling Indonesian assets, the index rose as it was lifted by domestic market participants' appetite for purchasing those stocks that experienced a fall on the previous trading day.
The rise of the Indonesia Stock Exchange (IHSG) at the start of today's session was not sustained. It disappointed market participants who were hoping that Indonesia's main index would continue its upward movement supported by strengthening American and European stock indices after it became known that Cyprus will stay in the Euro-zone and the Federal Reserve will continue its bond-buying program.
Despite global concerns, the bailout issue in Cyprus did not push Asian stock markets - including the Indonesia Stock Exchange (IHSG) - further in a downward spiral. From today's rebound of Asian stock indices we can conclude that market participants were optimistic after the meeting of the Cyprus parliament. Previously, panic emerged as imposition of fees to depositors was announced, although it is still planning only and not in effect yet.
