"Today, the IHSG is projected to remain flat. Investors will monitor the outcome of the meeting of BI's board of governors in which it will announce the BI7DRR (BI 7-Day Repo Rate) and other possible stimuli."
Jakarta (ANTARA) - The Jakarta Composite Share Price Index (IHSG) opened higher, Wednesday morning, ahead of Bank Indonesia's (BI's) announcement on the outcome of the meeting of its board of governors in the afternoon.

The index of the Indonesian Stock Exchange (BEI) rose 8.55 points, or 0.16 percent, to touch 5,303.72, while the index of the 45 most liquid stocks increased 1.85 points, or 0.22 percent, to reach 840.87.

"Today, the IHSG is projected to remain flat. Investors will monitor the outcome of the meeting of BI's board of governors in which it will announce the BI7DRR (BI 7-Day Repo Rate) and other possible stimuli," the Samuel Sekuritas research team noted in a report released on Wednesday.

The US stock exchange closed variative overnight, spurred by financial statements of large issuers, including Home Depot and Walmart, which reported sound financial performance.

The US politics triggered negative sentiment, with the US treasury secretary admitting to it being increasingly difficult for the Democrat Party to reach a compromise on new stimulus programs. In fact, senators from the Republic Party plan to propose an assistance program, including the US$10 billion aid, for the US post offices.

From the commodity market, crude prices remained flat on Tuesday's trading, with Brent standing at US$45.4 per barrel and WTI at US$42.89 per barrel. Meanwhile, gold prices in the spot market rose 0.9 percent to the tune of US$2,004.21 per troy ounce after the dollar index continued to weaken in the past few days.

On the internal front, the IHSG rose, fueled by the country's balance of trade that posted a surplus of US$9.2 billion in the second quarter of 2020.

The IHSG also closed higher after the current account deficit hit a record low of US$2.9 billion in the second quarter of 2020. The deficit stood at 1.2 percent of the national gross domestic product (GDP) as compared to 1.4 percent of the GDP in the previous quarter.

Moreover, on Tuesday, the Central Statistics Agency (BPS) announced that Indonesia's exports had dropped 9.9 percent year-on-year (yoy) to US$13.73 billion, while imports had declined 32.55 percent yoy to US$10.47 billion in July 2020, thereby enabling the country to enjoy a surplus of US$3.26 billion.

Regional markets recorded an increase in index on Wednesday morning, with the Nikkei index soaring 33.3 points, or 0.14 percent, to 23,073.39, and the Straits Times index strengthening 2.24 points, or 0.09 percent, to 2,565.33. However, the Shanghai index plunged 22.27 points, or 0.65 percent, to 3,428.82.
Related news: IHSG rises before announcement on July 2020 balance of trade

Related news: Indonesia's July Manufacturing PMI index reaches 46.9

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Translator: Citro Atmoko/Suharto
Editor: Fardah Assegaf
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