APSN Banner

IDX Composite soars 1.42% as US Fed holds interest rate steady

Jakarta Post - December 14, 2023

Jakarta – The Indonesia Stock Exchange (IDX) Composite (IHSG) concluded Thursday's trading session at 7,176.02, gaining 1.42 percent or 100.67 points.

This followed the United States Federal Reserve's recent policy meeting, during which it decided to keep its benchmark interest rate at the 5.25-5.5 percent range for the third consecutive meeting.

Ajaib Sekuritas financial expert Ratih Mustikoningsih noted earlier the generally positive trends in global and domestic catalysts, expressing optimism about the potential strengthening of the IHSG.

"The IHSG has the potential to strengthen along with the decline in 10-year US Treasury yields at 4 percent, following the Fed's dovish statement to cut interest rates in 2024," she said on Thursday morning, as quoted by Antara news agency.The Fed also hinted at a possible 75-basis-point cut in the benchmark rate over three 2024 meetings. Previously, the US central bank hiked the rate 11 consecutive times to the highest in over two decades.

The market saw a total transaction volume of 26.43 billion shares valued at Rp 15.62 trillion (US$1.015 billion). Among the listed stocks, 335 gained, 198 weakened and 228 remained unchanged.

Technology led the rally in the Indonesian stock market with a 5.93 percent jump, followed by the property and real estate sector at 2.31 percent. The financial and energy sectors rose by 2.15 percent and 1.64 percent, respectively.

The transportation and logistics, industrial, non-primary and primary consumer goods sectors saw gains ranging from 0.40 percent to 1.56 percent.

Meanwhile, three sectors recorded declines. The infrastructure sector fell by 1.91 percent, the raw goods sector slipped by 1.25 percent and the health sector lost 0.28 percent.

The LQ45 index closed positively, up 2.44 percent to 955.639. The biggest gainer in the index was PT Medco Energi Internasional (MEDC), with a 6.64 percent increase. PT Mitra Adiperkasa (MAPI) rose by 6.17 percent, while PT GoTo Gojek Tokopedia (GOTO) gained 5.62 percent.

PT Barito Pacific (BRPT) was the biggest loser, down 5.56 percent. PT Chandra Asri Petrochemical (TPIA) followed with a 2.72 percent dip, while PT Indah Kiat Pulp & Paper (INKP) declined by 1.88 percent.

Source: https://www.thejakartapost.com/business/2023/12/14/idx-composite-soars-1-42-as-us-fed-holds-interest-rate-steady.htm