The IHSG is expected to strengthen in today's trade, fueled by the US stocks closed in positive territory in Monday's trade, among othersJakarta (ANTARA) - The Jakarta Composite Share Price Index (IHSG) will potentially show a strengthening trend on Tuesday to follow a rise in the US stock index.
The Indonesian Stock Exchange (BEI) index jumped 20.49 points, or 0.39 percent, to reach 5,297.53, while the index of the 45 most liquid stocks climbed 3.7 points, or 0.44 percent, to touch 839.84.
"The IHSG is expected to strengthen in today's trade, fueled by the US stocks that closed in the positive territory during Monday's trade, among others," Valbury Sekuritas chief researcher Alfiansyah stated here on Tuesday.
The other factors will be the strengthening trend of Asian regional stocks, potential appreciation of the rupiah against the US dollar, and market optimism about the downward trend of new COVID-19 cases in the US, he pointed out.
The US Food and Drug Administration (FDA) has allowed the emergency use of blood plasma treatment for COVID-19 patients.
US President Donald Trump is upbeat about the treatment being able to reduce mortality rate by up to 35 percent.
Trump described the procedure as a powerful therapy as he appealed to people in the US to come forward to donate plasma if they had recovered from COVID-19.
On the domestic front, the government noted that realization of the national economic recovery budget fell short of target.
Finance Minister Sri Mulyani affirmed that the realization had reached Rp174.79 trillion, or 25.1 percent, as of August 19, 2020.
The realization of the economic recovery budget comprised the health program, worth Rp7.36 trillion, or at 13.9 percent; social protection, 49.7 percent; and support for micro, small, and medium businesses, at 37.2 percent, of the ceiling of Rp44.63 trillion.
The realization of corporate financing currently reaches zero percent. To this end, the government has set aside Rp53.57 trillion in budget funding.
The government remains resolute in its endeavors to expedite the absorption of budget funds as part of the national economic recovery strategy in the third quarter to prevent the national economy from contracting. In addition, it will utilize all instruments to restore consumption, investment, and exports.
Regional markets recorded an increase in index on Tuesday morning, with the Nikkei index soaring 341.89 points, or 1.49 percent, to 23,327.4; the Straits Times Index strengthening 25.6 points, or 1.01 percent, to 2,564.21; and the Hang Seng index rising 44.32 points, or 0.18 percent, to 25,596.21.
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Translator: Citro Atmoko/Suharto
Editor: Sri Haryati
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