Indonesian Stock Index Rises as Market Monitors Global Economic and Geopolitical Developments
Jakarta (ANTARA) – The Composite Stock Price Index (IHSG) of the Indonesia Stock Exchange (BEI) moved upwards on Wednesday morning as market players monitored economic and geopolitical developments at the global level.
The IHSG opened higher by 37.32 points or 0.45 per cent to 8,318.15. Meanwhile, the group of 45 leading stocks or the LQ45 index rose 3.41 points or 0.41 per cent to 841.04.
“Market players’ reactions will depend heavily on the content of US President Donald Trump’s speech, US tariff decisions, and the economic dynamics of China and geopolitics in the Middle East,” said the Lotus Andalan Sekuritas Research Team in its analysis in Jakarta on Wednesday.
The IHSG is projected to move volatilely, with its direction being sensitive to economic and geopolitical developments at the global level.
Domestically, export-based and commodity stocks tend to be more vulnerable to negative risks, while defensive sectors and domestically-oriented stocks could be an option for investors if a risk-off scenario occurs.
From the perspective of international trade, the US has officially imposed an additional 10 per cent tariff on imported goods using Section 122, with the possibility of an increase to 15 per cent still open.
The uncertainty surrounding US trade policy has increased global risk premiums and could encourage a risk-off attitude, which usually has an impact on the weakening of emerging market currencies, including the Rupiah, pressure on export-based and commodity stocks, and the potential for higher bond yields if investors demand higher risk compensation.
From the Asian region, the People’s Bank of China (PBoC) maintained the 1-year Loan Prime Rate at 3 per cent and the 5-year tenor at 3.5 per cent, even though the Chinese economy is showing slower growth and deflationary pressures.
This policy reflects efforts to maintain the stability of the Yuan, which has recently strengthened, but the strengthening of the currency risks putting pressure on China’s export competitiveness amid US tariff pressures.
China’s economic conditions, which have not fully recovered, are also an important factor for Indonesia given the close trade relations, especially in the commodity sector.
In trading on Tuesday (24/02), European stock exchanges closed with mixed results, including the Euro Stoxx 50 rising 0.10 per cent, the UK’s FTSE 100 index falling 0.04 per cent, the German DAX index falling 0.02 per cent, and the French CAC index rising 0.26 per cent.
Meanwhile, US stock exchanges on Wall Street rose collectively on Tuesday (24/02), including the Dow Jones Industrial Average rising 0.76 per cent to 49,174.50, the S&P 500 rising 0.77 per cent to 6,890.07, and the Nasdaq Composite rising 1.04 per cent to 22,863.6.
Regional Asian stock exchanges this morning, including the Nikkei index rising 865.41 points or 1.51 per cent to 58,186.50, the Shanghai index rising 32.38 or 0.78 per cent to 4,149.69, the Hang Seng index rising 91.68 points or 0.37 per cent to 26,690.00, and the Strait Times index falling 2.63 points or 0.05 per cent to 5,018.16.