IHSG Strengthens Supported by Oil Price Correction and US-Iran Peace Optimism
Jakarta (ANTARA) - The Composite Stock Price Index (IHSG) of the Indonesia Stock Exchange (BEI) closed higher on Thursday afternoon, supported by the correction in crude oil prices and optimism over a potential agreement between the United States (US) and Iran.
The IHSG closed up 81.85 points or 1.15% at 7,174.32. Meanwhile, the LQ45 index of 45 leading stocks rose 11.03 points or 1.62% to 693.79.
“The IHSG closed higher driven by peace optimism and the fall in oil prices,” said Head of Research at Phintraco Sekuritas, Ratna Lim, in her analysis in Jakarta on Thursday.
From abroad, Ratna said optimism about the imminent achievement of a peace agreement between the US and Iran has continued to drive the correction in WTI and Brent oil prices to below $100 per barrel.
The global crude oil price correction is easing concerns over rising inflation and widening budget deficits, should the US and Iran indeed agree to end the war and oil prices continue to weaken.
Domestically, the rupiah exchange rate closed stronger by 0.3% at Rp17,320 per US dollar in today’s trading, in line with the weakening US dollar index.
Opening higher, the IHSG remained in positive territory until the close of the first trading session. In the second session, the IHSG stayed in the green zone until the market close.
Based on the IDX-IC Sectoral Index, six sectors strengthened, led by the financial sector which rose 1.88%, followed by the industrial sector and the property sector, each up 1.17% and 1.12% respectively.
The stocks with the largest gains were DPUM, ESIP, DEPO, NATO, and ALKA. Meanwhile, the stocks with the largest declines were RICY, ABDA, HALO, ARGO, and TPIA.
Share trading frequency was recorded at 2,675,918 transactions, with 42.37 billion shares traded worth Rp23.19 trillion. A total of 361 stocks rose, 295 fell, and 160 remained unchanged.
Regional Asian stock markets this afternoon included the Nikkei index up 3,449.38 points or 5.80% to 62,962.50, the Shanghai index up 19.92 points or 0.48% to 4,180.09, the Hang Seng index up 412.50 points or 1.57% to 26,626.28, and the Straits Times index up 14.58 points or 0.30% to 4,941.96.