IHSG Rebounds Thursday Morning, Tracking Gains in Asian and Global Markets

REPUBLIKA.CO.ID, JAKARTA – The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) in Thursday morning trading rose, following gains in regional Asian and global equity markets. The IHSG opened 118.29 points higher, or 1.56 percent, to 7,695.35. Meanwhile, the 45 leading stocks or the LQ45 index rose 12.25 points, or 1.59 percent, to 784.70.

“From external factors, sentiment was helped by a firmer Wall Street and a stable US dollar, although geopolitical risk remains high,” Lotus Andalan Sekuritas Research Team said in its Jakarta note on Thursday.

From abroad, positive momentum came from stronger-than-expected US economic data, including the ADP private payrolls report and services sector growth that was better than forecast, with inflationary pressures starting to ease.

On the other hand, market participants are awaiting policy directions at the annual Two Sessions forum, which will determine growth targets and the economy’s forward strategy.

Global oil benchmarks Brent Crude Oil and West Texas Intermediate (WTI) were steady after the US government pledged steps to maintain smooth oil distribution in the Persian Gulf, thereby alleviating market concerns about the impact of Middle East conflicts on energy supply and the global economic outlook.

Domestically, Fitch Ratings cut Indonesia’s outlook from stable to negative, but kept the rating at BBB (investment grade).