Jakarta (ANTARA) - Indonesia\u2019s Composite Stock Price Index (IHSG) on\nthe Indonesia Stock Exchange (IDX) moved higher on Thursday, driven by\ninvestors\u2019 risk-on sentiment, as the US central bank, the Federal\nReserve, held its benchmark interest rate.<\/p>\n
The IHSG opened 18.89 points, or 0.31 per cent, higher at 6,110.28.\nMeanwhile, the group of 45 leading stocks, or the LQ45 Index, rose 2.52\npoints, or 0.42 per cent, to 609.04.<\/p>\n
\u201cAmid various external and internal sentiments as well as technical\nfactors, the IHSG is expected to test the psychological level of 6,000\nin Thursday\u2019s trading (30\/7),\u201d said Ratna Lim, Head of Research at\nPhintraco Sekuritas, in her review in Jakarta on Thursday.<\/p>\n
From overseas, the US central bank, the Fed, through the FOMC,\nmaintained its benchmark interest rate at 3.5\u20133.75 per cent, in line\nwith expectations, thereby removing some of the concerns among market\nplayers regarding the possibility of a rate hike.<\/p>\n
Nevertheless, three Fed officials disagreed with the decision and\nopted for tighter monetary policy, underscoring how far oil price\nvolatility has complicated the central bank\u2019s task.<\/p>\n
On the other hand, indications from the bond market that the Fed may\nbe falling behind in its efforts to bring down inflation, as the central\nbank chose to keep rates unchanged, also weighed negatively on US\nmarkets.<\/p>\n
Fed Chair Kevin Warsh stressed that the committee\u2019s decision was\ncrucial and that it would not hesitate to act. However, this statement\nfailed to convince the bond market.<\/p>\n
Meanwhile, Brent and WTI oil prices closed more than 7 per cent and 6\nper cent higher at US$90 per barrel and US$84 per barrel respectively,\nafter US President Donald Trump said the United States would strike Iran\nhard in retaliation for a surprise attack attempt on US forces in the\nMiddle East.<\/p>\n
Domestically, the IDX announced the results of its evaluation of the\nIDXBUMN20 index, effective from 5 August 2026 to 2 February 2027. In\nthis evaluation, there were no constituent changes, so all 20 stocks\nremain in the index.<\/p>\n
Nevertheless, the IDX adjusted the number of shares used to calculate\nthe index as well as the weighting of each listed company.<\/p>\n
Meanwhile, the Financial Services Authority (OJK), together with the\nSROs, continues to strengthen reforms of the Indonesian capital market\nahead of the MSCI Index Review in November 2026. These steps are being\ntaken through intensive communication with global index providers and\nreinforced implementation of various capital market reform agendas.<\/p>\n
The OJK is targeting the issuance of the OJK Regulation (POJK) on the\nDemutualisation of the Indonesia Stock Exchange in the second week of\nSeptember 2026. The regulator is currently drafting the implementing\nrules of Law Number 4 of 2026, involving various stakeholders.<\/p>\n
In Wednesday\u2019s trading (29\/7), European exchanges were mixed: the\nEuro Stoxx 50 fell 0.70 per cent, the UK\u2019s FTSE 100 rose 0.34 per cent,\nGermany\u2019s DAX slipped 0.01 per cent, and France\u2019s CAC 40 declined 0.60\nper cent.<\/p>\n
Meanwhile, Wall Street weakened on Wednesday (29\/7): the S&P 500\nfell 2.19 per cent to 7,316.15, the Nasdaq Composite lost 2.06 per cent\nto 27,192.31, and the Dow Jones Industrial Average dropped 2.19 per cent\nto 51,594.14.<\/p>\n
Asian regional stock markets this morning saw the Nikkei rise 2.15\nper cent to 62,757.00, the Shanghai index fall 0.07 per cent to\n4,825.95, the Hang Seng decline 1.65 per cent to 7,264.76, and the\nStraits Times slip 0.61 per cent to 5,678.92.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ihsg-strengthens-on-risk-on-sentiment-as-fed-holds-rates-1785383592", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }