The IHSG remained in a red zone due to The Fed governor's dovish stand that the COVID-19 pandemic has slowed down the US economic growth.
Jakarta (ANTARA) - The Jakarta Composite Index (IHSG) ended lower on Thursday following Bank Indonesia's (BI's) decision to keep its key interest rate unchanged at four percent.

The index of the Indonesian Stock Exchange (BEI) plunged 20.08 points, or 0.4 percent, to 5,038.4, while the index of the 45 most liquid stocks (LQ45) rose 5.83 points, or 0.75 percent, to 775.54.

"The IHSG remained in the red zone due to the Fed governor's dovish stand that the COVID-19 pandemic has slowed down the US economic growth," Bina Artha Sekuritas analyst M. Nafan Aji Gusta Utama stated on Thursday.

Utama noted that compounding it all was the total re-enforcement of large-scale social restrictions (PSBB) in Jakarta that led to investors adopting a wait-and-watch approach.

"The other sentiment is the domestic and global uptrend in the number of COVID-19 cases," he pointed out.

Soon after opening higher, the IHSG weakened and stayed in the red zone until the close of trade.

On a sectoral basis, the shares of seven sectors recorded a correction, with the basic industry falling deeper by minus 1.59 percent, followed by the financial sector at minus 0.78 percent, and the mining sector at minus 0.7 percent.

Meanwhile, the property sector registered the biggest climb of 2.55 percent, followed by the various industrial sectors at 1.16 percent and the agricultural sector at 0.62 percent.

Net sales of foreign investors reached Rp405.02 billion during Thursday's trade.

According to trade data, 605,067 transactions were recorded on Thursday, with 110.22 billion shares, worth Rp6.68 trillion, changing hands. Meanwhile, 149 shares rose, 269 shares fell, and 155 shares remained unchanged.

In regional markets on Thursday evening, the Nikkei Index plunged 156.16 points, or 0.67 percent, to 23,319.37; the Hang Seng Index tumbled 384.76 points, or 1.56 percent, to 24,340.85; and the Straits Times Index dropped 4.52 points, or 0.18 percent, to 2,500.63. Related news: IHSG opens higher before Fed's announcement of meeting results
Related news: IHSG ends higher as Jakarta PSBB lifts sentiment



Translator: Citro Atmoko/Suharto
Editor: Rahmad Nasution
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