IHSG rebounds, following Asian regional and global stock markets

Jakarta — The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) on Thursday morning rebounded, following gains in regional Asian and global stock markets. The IHSG opened higher by 118.29 points, or 1.56 percent, to 7,695.35. Meanwhile, the LQ45 index, comprising 45 leading stocks, rose 12.25 points, or 1.59 percent, to 784.70. Externally, sentiment was helped by a rally on Wall Street and the stability of the US dollar, though geopolitical risks remained high, according to a note from Lotus Andalan Sekuritas’ Research Team in Jakarta on Thursday. From abroad, positive sentiment came from strong US economic data, including the ADP private payrolls report and better-than-expected services sector growth, with inflationary pressures easing. Global benchmark Brent Crude and West Texas Intermediate (WTI) prices moved steady after the US government pledged steps to ensure smooth oil supply in the Persian Gulf, easing market concerns about the impact of the Middle East conflict on energy supply and the global economic outlook. Domestically, Fitch Ratings did cut Indonesia’s outlook from stable to negative, but kept the rating at BBB (investment grade).