IHSG strengthens as tensions allay over US-China trade war

IHSG strengthens as tensions allay over US-China trade war

(Illustration) - Brokers discussed the movement of the composite share price index (IHSG) at the Jakarta Stock Exchange. (ANTARA FOTO/Yudhi Mahatma/wdy)

Earlier, the US stocks had closed higher on Thursday, bolstering support to the BEI index to stay in the positive zone.
Jakarta (ANTARA) - The Indonesia composite share price index (IHSG) of the Indonesia Stock Exchange (BEI) strengthened on Friday morning in line with tensions allaying over the US-China trade war.

The IDX increased 7.78 points, or 0.12 percent, to 6,343.48. The index of the 45 most liquid stocks rose 1.84 points, or 0.18 percent, to 1,010.89.

Valbury Sekuritas chief researcher Alfiansyah remarked on Friday that the de-escalation in tensions over the US-China trade war amid geopolitical tensions in the Middle East and challenges to the Indonesian economy in the face of the threat of global economic uncertainty are expected to boost the IHSG to move in the green zone on Friday.

"Earlier, the US stocks closed higher on Thursday, bolstering support to the BEI index to remain in the positive zone," he noted.

On the external front, the Middle Eastern geopolitics is expected to heat up after Iran declared on Thursday that it had shot down a US drone.

The shooting occurred at a time when tensions between Iran and the United States flared up after both nations were unable to reach a nuclear agreement.

The US had earlier leveled accusations on Iran of launching a guided missile on another drone last week after attacks on two oil tankers near Oman Bay.

The rising US-Iran tensions might push the prices of global commodities, especially of crude oil.

Regional markets that weakened on Friday morning comprised Nikkei plunging 49.41 points, or 0.23 percent, to 21,413.45, and the Hang Seng decreasing 61.05 points, or 0.21 percent, to 28,489.38; while the Straits Times Index rose 3.51 points, or 0.11 percent, to 3,318.02.

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