The IHSG is forecast to move within a limited zone and tend to be flat to follow the trend of the global stock marketsJakarta (ANTARA) - The Jakarta Composite Share Price Index (IHSG) is expected to trade flat on Wednesday to follow the trend of the global stock markets.
The Indonesian Stock Exchange (BEI) index rose 10.81 points, or 0.2 percent, to reach 5,349.7, while the index of the 45 most liquid stocks increased 2 points, or 0.24 percent, to touch 852.99.
"The IHSG is forecast to move within a limited zone and tend to be flat to follow the trend of the global stock markets, while (the market) awaits the release of Rp600 thousand in social assistance per month for workers, with a monthly salary of below Rp5 million for the next four months," Samuel Sekuritas Research Team noted in a report quoted by ANTARA on Wednesday.
The US stock exchange moved variative during overnight trade, with limited movement. Trading on the US stock exchange was restrained by the negative sentiment over the consumer confidence index that nosedived to 84.8 in August, from 91.7 a month earlier and fell far short of the consensus estimate of 93.
The declining consumer confidence index is linked to the disappearance of the additional US$600 weekly unemployment benefits in the US.
Negative sentiment was also triggered by riots following the shooting of 29-year-old man Jacob Blake in Wisconsin.
However, a decline in the number of new confirmed COVID-19 cases in the US to 38 thousand and to below 50 thousand since mid-August lent a positive sentiment.
The other positive sentiments arose from the US Food and Drug Administration's approval of the emergency use of blood plasma treatment for COVID-19 patients and expectations of easing US-China trade war tensions.
On the domestic front, Finance Minister Sri Mulyani is upbeat about the national economy growing in the range of 0 percent to minus 2 percent in the third quarter of 2020. The minister has projected the economy to grow within a range of minus 1.1 percent to 0.2 percent for this year.
On the other hand, tax receipts and the manufacturing industry contracted 28.9 percent year-on-year (yoy) in July, down from 36.2 percent yoy a month earlier.
In the regional stock markets on Wednesday morning, the Nikkei index tumbled 27.83 points, or 0.12 percent, to 23,268.94; the Hang Seng index jumped 59.7 points, or 0.23 percent, to 25,545.92; and the Straits Times index fell 22.12 points, or 0.86 percent, to 2,536.91. Related news: IHSG to potentially strengthen to follow US stock index rise
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Translator: Citro Atmoko/Suharto
Editor: Rahmad Nasution
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