IHSG to potentially weaken after long weekend

IHSG to potentially weaken after long weekend

A worker looked at the movement of the IHSG though gadget in Jakarta on Wednesday (Aug 19). ANTARA PHOTO/Puspa Perwitasari/wsj.

We project a potential weakening of the IHSG today following two holidays last week
Jakarta (ANTARA) - The Jakarta Composite Share Price Index (IHSG) will potentially show a weakening trend on Monday morning after a long weekend.

The Indonesian Stock Exchange (BEI) index increased 9.53 points, or 0.18 percent, to reach 5,282.34, while the index of the 45 most liquid stocks rose 1.96 points, or 0.23 percent, to touch 836.79.

"We project a potential weakening of the IHSG today following two holidays last week," the Samuel Sekuritas research team noted in a report released here on Monday.

The government had declared Friday (Aug 21) a collective leave day in addition to the Islamic New Year on Thursday (Aug 20) to create a four-day weekend.

The US market closed higher last Friday (Aug 21), driven by positive economic data, though trade volume was relatively low and largely dependent on the large capitalization technology stocks.

The IHS Markit US Manufacturing PMI improved to 53.6 in August, from 50.9 in July, surpassing market forecasts. The reading pointed to the strongest rise in 19 months

The service sector index also hit a 17-month record high of 54.8 in August as compared to 50 a month earlier. Meanwhile, home sales jumped 24.7 percent during the period between June and July.

On the internal front, the Indonesian market was closed last Thursday (Aug 20) and Friday (Aug 21) after plunging 0.42 percent on last Wednesday (Aug 19) to 5,272.8.

Last Wednesday, the meeting of Bank Indonesia's board of governors reached a decision to leave the BI 7-Day Repo Rate unchanged at four percent.

Moreover, two state lenders Bank Mandiri and Bank Rakyat Indonesia (BRI) also released their first-semester performance in close heels to the other state lender Bank Negara Indonesia (BNI) a day earlier.

Foreign investors recorded net sales in the regular market at Rp319.9 billion.

Regional markets recorded an increase in index on Monday morning, with the Nikkei index soaring 58.04 points, or 0.25 percent, to 22,978.34, the Straits Times index strengthening 2.94 points, or 0.12 percent, to 2,531.48, and the Hang Seng index climbing 379.27 points, or 1.51 percent, to 25,493.11.

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