Airlangga: IHSG in the green today; market correction a normal occurrence

Jakarta (ANTARA) – Coordinating Minister for Economic Affairs Airlangga Hartarto said that the Indonesia Stock Exchange Composite Index (IHSG) was in positive territory today and that the market correction taking place is a normal development.

‘First, note that the IHSG is in the green today,’ Airlangga said at the Presidential Palace complex in Jakarta on Friday.

He explained that the earlier IHSG movement was linked to issuers exiting rating agencies. In his view, that condition had triggered a correction in the market.

‘Actually the IHSG yesterday had issuers leaving the rating agencies. Well, of course the correction is a normal thing; there is a correction in the market,’ he said.

He also stressed that the market correction was not influenced by sentiment around the formation of PT Danantara Sumber Daya Indonesia (DSI) nor by the trade balance deficit.

‘No,’ he asserted.

The IHSG on Friday afternoon closed higher, supported by a rebound in energy and basic materials shares.

IHSG closed up 67.11 points or 1.10% at 6,162.05. Meanwhile the LQ45 index, representing 45 leading shares, rose 4.04 points or 0.66% to 620.44.

‘IHSG closed higher in line with rallies in energy and basic materials shares,’ Ratna Lim, Head of Research at Phintraco Sekuritas said in her Jakarta briefing on Friday.

The IHSG had earlier dipped to as low as 5,966.86 during the trading day, with almost all sectors finishing in the green.

Opening weaker, the IHSG moved into positive territory by the close of the first trading session. In the second session, the IHSG remained in the green until the market closed.

Based on the IDX-IC Sectoral Index, ten sectors rose, led by the basic materials sector which jumped 6.74%, followed by the energy sector and the non-primary consumer goods sector which rose 4.82% and 2.43% respectively. Meanwhile, one sector fell—the financial sector, down 0.07% the most.