The market sees Summers as a candidate who may speed up the reduction of Fed`s financial stimulus..."Jakarta (ANTARA News) - The Indonesian Composite Index (IHSG) at the Indonesian Stock Market (BEI) rose by 13.46 points on Monday, in view of the strengthened market in Asia.
IHSG rose by 13.46 points or 0.99 percent to 4,418.99 and the 45 blue chips strengthened 11.48 points or 1.56 percent to 748.19.
"The Asian market strengthened, including the BEI, which is seen as a positive sentiment of Lawrence Summers` withdrawal from the Fed`s governor candidacy," said Samuel Security`s Analyst Benecditus Agung.
"The market sees Summers as a candidate who may speed up the reduction of Fed`s financial stimulus and raise the US interest rate," he added.
Therefore, the strengthened regional market, which is a result of this positive sentiment, was expected to bring the BEI index to a positive level and reach the upper limit level of 4,400 points.
Meanwhile, according to Mandiri Security`s Technical Analysts Team, after the announcement of Bank Indonesia's (BI) rate, the market is now waiting for the Indonesian trade and inflation balance from the Central Bureau of Statistics.
The market would also focus on the Federal Open Market Committee (FOMC) meeting on September 18 and 19, which determines the direction of the US monetary policy.
Following the current issues this week, the BEI index is predicted to fluctuate with the limit hike in the range of 4,400 points, in the upper limit level, and 4,337 points in the lower limit level.
Regional markets such as Hang Seng strengthened 297.40 points (1.30 percent) to 23,212.68, Nikkei-225 strengthened 17.40 points (0.12 percent) to 14,404.67, and Straits Times rose by 44.43 points (1.42 percent) to 3,165.28.
(Uu.A060/INE/KR-BSR/O001)
Editor: Priyambodo RH
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