IHSG ends lower over rise in US bond yields

IHSG ends lower over rise in US bond yields

Illustration - The Indonesian Stock Exchange (BEI) shed 33.95 points to reach 6,324.26 on Monday (March 15, 2021). (ANTARA FOTO/Akbar Nugroho Gumay/wsj/aa)

The IHSG will tend to decline this week.
Jakarta (ANTARA) - The Jakarta Composite Index (IHSG) ended lower on Monday tracking the rise in yields on US bonds over inflationary concerns.

 

The index of the Indonesian Stock Exchange (BEI) fell 33.95 points, or 0.53 percent, to reach 6,324.26, while the index of the 45 most liquid stocks (LQ45) rose 7.74 points, or 0.81 percent, to touch 943.09.

 

"The IHSG saw a correction today amid an uptrend in bond yields, so the concern of fund markets and emerging markets may return to the US," Jasa Utama Capital Sekuritas analyst Chris Apriliony said.

 

The drastic increase in yields on 10-year US bonds to 1.62 percent has been attributed to expectations of inflation, which have become the center of investors' attention, he added.

 

In addition, global investors are still in a wait-and-watch mood over the meeting of the Federal Open Market Committee (FOMC), which is scheduled to take place on March 18, 2021, he said.

 

"The IHSG will tend to decline this week,” Apriliony predicted.

 

Shortly after opening higher on Monday, the IHSG remained in the green in the first one hour and later fell and stayed in the red until the close of trade.

 

Based on the IDX-IC Sectoral Index, stocks in four sectors rose, led by the transportation and logistics sector, which climbed 4.79 percent, followed by the industry and health sectors, which increased 1.6 percent and 0.75 percent, respectively.

 

Meanwhile, stocks in seven sectors recorded a correction, with the raw material sector deepening its slide by minus 1.22 percent, followed by the infrastructure sector and the property and real estate sector, which declined 1.19 percent and 0.38 percent, respectively.

 

Monday's trade posted net foreign sales of Rp160.24 billion.

 

A total of 1,212,371 transactions were recorded during the day, with 21.56 billion shares, worth Rp11.17 trillion, changing hands. Meanwhile, 253 shares rose, 233 shares fell, and 153 shares remained unchanged.

 

In the Asian regional markets, the Nikkei Index added 49.14 points, or 0.17 percent, to reach 28,766.97; the Hang Seng Index increased by 94.04 points, or 0.33 percent, to touch 28,833.76; while, the Straits Times Index rose by 10.52 points, or 0.34 percent, to 3,105.74. (INE)

Related news: IHSG ends higher on easing concerns over rising yields on US bonds

Related news: IHSG opens positive on strong global cues


 

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