Danantara CIO: IHSG Weakness More Influenced by Rupiah

Jakarta (ANTARA) - Chief Investment Officer (CIO) of the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara), Pandu Sjahrir, assesses that the weakening of the Composite Stock Price Index (IHSG) is more heavily influenced by the rupiah exchange rate factor than by sentiments related to the MSCI index rebalancing towards the Indonesian capital market.

“I think it’s not just about MSCI (Morgan Stanley Capital International), today’s (IHSG) movement is more due to the rupiah and other factors,” said Pandu in Jakarta on Monday.

Pandu conveyed this in response to market anticipation regarding the MSCI announcement on the Indonesian stock index and the impact of that sentiment on IHSG movements.

Nevertheless, he is optimistic about the development of the Indonesian capital market and the implementation of several policies carried out by the stock exchange authorities.

He hopes that the MSCI announcement results, scheduled for Tuesday (12/5), can provide positive sentiment to the domestic financial market.

“Insya Allah, tomorrow (the announcement results) will be good,” said Pandu.

According to him, the current domestic stock market movements are influenced by various external and internal factors, including the dynamics of the rupiah exchange rate against the US dollar.