IHSG opens higher before Fed's announcement of meeting results

IHSG opens higher before Fed's announcement of meeting results

An employee observed the screen displaying share trade at the Indonesia Stock Exchange on Thursday (Sept 10). ANTARA FOTO/Reno Esnir/hp.

During today's trade, the IHSG is likely to move in a limited zone, while investors will continue to closely watch on whether the ongoing large-scale social restrictions (PSBB) policy (in Jakarta) has successfully contained the spread of COVID-19.
Jakarta (ANTARA) - The Jakarta Composite Index (IHSG) opened higher on Wednesday morning prior to the US Federal Reserve announcing results of its meeting scheduled for mid-week.

The index of the Indonesian Stock Exchange (BEI) rose 7.26 points, or 0.14 percent, to reach 5,1108.13, while the index of the 45 most liquid stocks (LQ45) increased two points, or 0.25 percent, to touch 792.74.

"During today's trade, the IHSG is likely to move in a limited zone, while investors will continue to closely watch on whether the ongoing large-scale social restrictions (PSBB) policy (in Jakarta) has successfully contained the spread of COVID-19," Samuel Sekuritas research team noted in a report on Wednesday.

The investors also await results of meetings to be held by the Federal Open Market Committee (FOMC) and the Bank of England in the middle of this week, according to the report.

The Wall Street moved in positive trend overnight, fueled by several factors, including the resumed clinical trials of the Astra Zeneca COVID-19 vaccine that was temporarily suspended owing to side-effects reported by the trial’s volunteers.

Meanwhile, Pitzer announced it will submit main data on clinical trials of its vaccine to the regulator in October 2020 at the latest.

A positive sentiment also arose from the economic data. The index of the New York Empire State Manufacturing Index improved to 17 in September, up from 3.7 in August, surpassing economists' estimate of 7.

On the other hand, the Chinese economy has also begun to recover. Intel's sales rose 0.5 percent year-on-year in August, indicative of the first positive performance this year.

In the commodity market, crude prices rose, driven by positive economic data released by the US and China, the world's two largest economies and the typhoon in the Gulf Coast disrupting oil supplies in the US.

In regional markets on Wednesday morning, the Nikkei Index rose 30.48 points, or 0.13 percent, to 23,485.37; the Hang Seng Index increased 5.98 points, or 0.02 percent, to 24,738.74; and the Straits Times Index gained 9.26 points, or 0.37 percent, to reach 2,495.09. EDITED BY INE

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