"We see that the IHSG can still continue its strengthening trend."Jakarta (ANTARA) - The Jakarta Composite Share Price Index (IHSG) is projected to strengthen on the weekend after the US Federal Reserve Governor Jerome Powell's speech.
The Indonesian Stock Exchange (BEI) index rose 2.97 points, or 0.06 percent, to reach 5,374.44, while the index of the 45 most liquid stocks increased 0.38 points, or 0.04 percent, to touch 853.05.
"We see that the IHSG can still continue its strengthening trend," Samuel Sekuritas Research Team noted in a report quoted by Antara on Friday.
US Federal Reserve Governor Jerome Powell announced a change in the inflation targeting policy to average inflation target. In the new policy framework, the central bank said it will allow inflation to run above two percent for some period of time before the Fed issues a tight monetary policy.
As such, interest rate can stay at a low level longer than earlier. The policy is also expected to encourage labor absorption.
On the internal front, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the realization of national economic recovery (PEN) funds had reached 25 percent of the budget totaling Rp695 trillion.
Regional markets recorded an increase on Friday morning, with the Nikkei index rising 66.53 points, or 0.29 percent, to 23,275.39; the Hang Seng index swelling 148.27 points, or 0.59 percent, to 25,429.42; and the Straits Times index strengthening 38.95 points, or 1.55 percent, to 2,558.76.
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