On the external front, market euphoria is high over the US presidential election that lasted in a very democratic way. The market also praised the Fed for its decision to keep its interest rate (unchanged) at 0.25 percent.
Jakarta (ANTARA) - The Jakarta Composite Index (IHSG) ended higher on Friday as economic growth data fueled hopes of a national economic recovery and euphoria over the US presidential vote boosted investor sentiment.



The index of the Indonesian Stock Exchange (BEI) closed 75.2 points higher, or up 1.43 percent, at 5,335.53, while the index of the 45 most liquid stocks (LQ45) gained 18.74 points, or 2.3 percent, to touch 834.9.



The IHSG strengthened as market euphoria was high over national economic recovery, Bina Artha Sekuritas analyst M. Nafan Aji Gusta stated.



“On the external front, market euphoria is high over the US presidential election that lasted in a very democratic way. The market also praised the Fed for its decision to keep its interest rate (unchanged) at 0.25 percent,” he added.



The Central Statistics Agency (BPS) announced on Thursday that the Indonesian economy contracted 3.49 percent (yoy) in the third quarter of 2020.



After recording negative growth for two consecutive quarters, Indonesia has officially fallen into a recession akin to that experienced by various countries battered by the COVID-19 pandemic, BPS head Suhariyanto stated at a press conference.



However, despite experiencing negative growth on a quarterly basis (qtq), Indonesia’s economy advanced 5.05 percent quarter-on-quarter in Q3 of 2020, showing signs of significant recovery.



The market cheered the news. After opening higher on Friday, the IHSG remained in the positive zone until the close of trade.



Stocks in all sectors recorded an uptick, led by the miscellaneous industry, which jumped 4.55 percent, followed by the basic industry and the manufacturing industry, which rose 2.31 percent and 2.03 percent, respectively.



Friday’s trade posted net foreign purchases of Rp327.79 billion.



A total of 857,839 transactions were recorded on Friday, with 12.87 billion shares, worth Rp10.5 trillion, changing hands. Meanwhile, 263 shares rose, 161 shares fell, and 188 shares remained unchanged.



In the Asian regional markets, the Nikkei index swelled 219.95 points, or 0.91 percent, to 24,325.23; the Shanghai Index rose 17.05 points, or 0.07 percent, to 25,712.97; while, the Straits Times Index shed 10.23 points, or 0.4 percent, to reach 2,578.39. (INE)

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Translator: Citro Atmoko/Suharto
Editor: Fardah Assegaf
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