IHSG closes higher after inauguration of new cabinet

IHSG closes higher after inauguration of new cabinet

Illustration - Several employees observed the movement of shares at the Indonesia Stock Exchange ANTARA FOTO/Nova Wahyudi/ama.

Both the rupiah and IHSG still have the potential to strengthen tomorrow, along with the agenda of RDG BI (meeting of Bank Indonesia's board of governors) to set BI 7DRR rate
Jakarta (ANTARA) - The Jakarta composite index (IHSG) closed higher on Wednesday evening, following the inauguration of the new Indonesian cabinet of President Joko Widodo (Jokowi). The index at the Indonesian Stock Exchange (BEI) rose 32.31 points, or 0.52 percent, to 6,225.5, while the index of the 45 most liquid stocks increased 9.21 points, or 0.94 percent, to 992.12.

"The euphoria of the presidential and vice presidential inauguration and the announcement of cabinet lineup that lasted in a conducive manner has given a positive catalyst to the strengthening of IHSG and rupiah," Binaartha Sekuritas analyst M Nafan Aji Gusta said in Jakarta Wednesday.

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The condition reflected political stability, security and inclusive and sustainable domestic macroeconomy which shored up investors' confidence. Moreover, Indonesia is an emerging market in the investment-grade category, he said.

"Both the rupiah and IHSG still have the potential to strengthen tomorrow, along with the agenda of RDG BI (meeting of Bank Indonesia's board of governors) to set BI 7DRR rate," he said.

After opening lower, the IHSG weakened throughout the first session. In the second session, the IHSG strengthened and remained in the green zone until the closing of the stock exchange.

It closed, with net foreign selling recorded at Rp231.73 billion.

Trade Thursday was recorded, at 550,879 transactions, and 17.75 billion shares, worth Rp9.66 trillion, changing hands. Gainers were outnumbered by decliners, with 198 shares against 190 shares, with 166 shares remaining unchanged.

Regional markets, such as the Nikkei Index, rose 75.5 points, or 0.34 percent, to 22,625.4, while Hang Seng index weakened 219.5, or 0.82 percent to 26,566.7 and the Straits Times Index fell 16.39 points or 0.57 percent, to 3,144.28.

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