The composite share price index (IHSG) of the Indonesia Stock Exchange (BEI) opened lower on Thursday morning following the Federal Reserve's announcement to cut its interest rate.
The IHSG weakened 5.24 points, or 0.08 percent, to 6,385.26. The index of the 45 most liquid stocks, LQ45, declined 1.48 points, or 0.14 percent, to 1,020.95.
Valbury Sekuritas Chief Researcher Alfiansyah remarked in Jakarta on Thursday that the Fed cut its interest rate, as the US stock market reeled under intense pressure on Wednesday, July 31, 2019.
"The sentiment for the US stock market that nosedives may have an impact on the Asian regional market and the Indonesia Stock Exchange, with the IHSG reference index being prone to correction in share trading today," he noted.
The Fed decided to lower its interest rate by 25 basis points to 2-2.25 percent for the first time since the global financial crisis in 2008 when concerns over global trade and economic slowdown and inflation pressure were rising.
Asian regional markets that strengthened on Thursday morning comprised Nikkei, rising 25.15 points, or 0.12 percent, to 21,546.69, and the Straits Times Index strengthening 5.75 points, or 0.17 percent, to 3,306.51. However, the Hang Seng tumbled 104.25 points, or 0.38 percent, to 28,673.5.
Related news: Rupiah strengthens as investors brace for Fed's announcement
Related news: IHSG strengthens over Fed's decision to hold rates steady
The IHSG weakened 5.24 points, or 0.08 percent, to 6,385.26. The index of the 45 most liquid stocks, LQ45, declined 1.48 points, or 0.14 percent, to 1,020.95.
Valbury Sekuritas Chief Researcher Alfiansyah remarked in Jakarta on Thursday that the Fed cut its interest rate, as the US stock market reeled under intense pressure on Wednesday, July 31, 2019.
"The sentiment for the US stock market that nosedives may have an impact on the Asian regional market and the Indonesia Stock Exchange, with the IHSG reference index being prone to correction in share trading today," he noted.
The Fed decided to lower its interest rate by 25 basis points to 2-2.25 percent for the first time since the global financial crisis in 2008 when concerns over global trade and economic slowdown and inflation pressure were rising.
Asian regional markets that strengthened on Thursday morning comprised Nikkei, rising 25.15 points, or 0.12 percent, to 21,546.69, and the Straits Times Index strengthening 5.75 points, or 0.17 percent, to 3,306.51. However, the Hang Seng tumbled 104.25 points, or 0.38 percent, to 28,673.5.
Related news: Rupiah strengthens as investors brace for Fed's announcement
Related news: IHSG strengthens over Fed's decision to hold rates steady
Translator: Citro Atmoko, Suharto
Editor: Azizah Fitriyanti
Copyright © ANTARA 2019
