TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
IDX Composite bounces back, closing at 7,134.62 on Thursday
IDX Composite rebounded 0.67 percent to close at 7,134.62 on Thursday as November's forex reserves reached US$138.1 billion.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
An employee takes a picture of stock movements at the Indonesia Stock Exchange (IDX) in Jakarta on July 4, 2023. The IDX Composite rebounded 0.67 percent to close at 7,134.62 on Dec. 7, 2023, as November's forex reserves reached US$138.1 billion. (Antara/Hafidz Mubarak A)
T
he Indonesia Stock Exchange (IDX) Composite (IHSG) closed higher on Thursday, up 47.22 points or 0.67 percent at 7,134.62, recovering from a slight decline in the previous session.
Trading activity on the stock exchange saw a total volume of 26.31 billion shares, amounting to Rp 13.44 trillion (US$860.16 million). Among the listed stocks, 177 gained, 377 declined and 206 remained unchanged.
Two sectoral indexes contributed to driving the index upward, with the raw goods sector surging by 4.06 percent, and the infrastructure sector rising by 3.08 percent.
The remaining sectors went down or stayed flat, with the property sector leading the losses at 1.23 percent. Energy and technology followed suit, losing 0.74 percent and 0.73 percent, respectively.
Earlier in the day, BNI Sekuritas head of retail research analyst Fanny Suherman predicted a sideways trend for the IHSG ahead of Indonesia's foreign exchange reserves publication for November.
"Today, the IHSG has the potential to move sideways in the range of 7,060-7,150. The IHSG support level is at 7,060-7,070, and the IHSG resistance level is at 7,120-7,150," said Fanny on Thursday morning, as cited by Antara news agency.
Bank Indonesia later reported that November reserves reached $138.1 billion, up from $133.1 billion in October. Factors contributing to this rise included the issuance of global sukuk (sharia-compliant bonds), the repayment of foreign loans, and increased tax and service revenues.
Looking ahead, analysts from BRI Danareksa Sekuritas, Erindra Krisnawan and Wilastita Muthia Sofi maintained their IHSG target for 2024 at 7,830, a 12 percent increase from the end of 2023 target of 7,000.
"Our base case index target is based on an EPS [earnings per share] growth forecast of 7 percent and expectation of risk premium normalization that causes PE [price to earning] to return to 14.5 times," they said on Thursday, as quoted by bisnis.com.
The research team also presented bearish targets at 7,520 and bullish targets based on EPS growth of 4 and 8 percent, with PE targets of 14.2 times and 14.7 times, respectively.
They anticipate a slowdown in banking sector growth, aligning with an historical trend during election years, but project a 12 percent year-on-year increase for telecommunication companies.
