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Rupiah, JCI jump in response to Fed meeting minutes
(Courtesy of tempo
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(Courtesy of tempo.co) (Courtesy of tempo.co)
(Courtesy of tempo.co)
The rupiah jumped 292 points in the spot market, to 13,450 per US dollar as of 8:20 am, followed by the Jakarta Composite Index (JCI) which grew by 1.36 percent in Friday's opening to 4,552.81.
All of the sectoral indices moved up, led by the Miscellaneous Industrial Sector Index with a 2.7 percent increase, followed by the Basic Industrial Sector with a 2.6 percent increase.
An analyst at KBD Daewoo Research, Taye Shim, said the markets were moving without fundamental reasons. One of the most important factors was that the global markets were still fragile, prompting the US to put the Fed Rate rise on hold this year.
'This has translated into a relief rally and we will see short-term trading opportunities until the end of the year. Hence, we are lifting our year-end target JCI price to 4,050-4,658,' he wrote in a note to investors.
However, Taye continued, this was not the beginning of a bull rally since the developments in China and the Eurozone were still uncertain, and it would act as a potential threat to Indonesia's economic growth.
Meanwhile, Hong Kong and Shanghai rallied following the US market after the release of the US' Federal Reserve meeting minutes showed that the Fed fund rate would be maintained at its lowest level in history for a longer period.
AFP reported that Hong Kong's Hang Seng Index rose 1.17 percent at opening, China's Shanghai Index added by 0.1 percent, while Australia's S&P/ASX 200 climbed 0.9 percent. The MSCI Asia Pacific Index rose 0.8 percent. (ags)
