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IDX Composite concludes short trading week down 0.17%
IDX Composite fell by 0.17 percent on Wednesday as the market assessed Indonesia’s forex reserves data and China’s economic policy trends.
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Attendees look at stock trading movements during the trade opening ceremony at the Indonesi Stock Exchange (IDX) in Jakarta on Jan. 2, 2024. The IDX Composite fell by 0.17 percent on Feb. 7, 2024, as the market assessed Indonesia’s foreign exchange reserves data and China’s economic policy trends. (Antara/Asprilla Dwi Adha)
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he Indonesia Stock Index (IDX) Composite (IHSG) closed 12.25 points, 0.17 percent, lower at 7,235.15 on Wednesday. The index fluctuated throughout the day, reaching a high of 7,285.12 and a low of 7,225.44.
Out of the 11 IDX sectors, three posted gains, led by the transportation sector with a 0.64 percent increase. The industrial and financial sectors also rose by 0.26 percent and 0.2 percent, respectively.
On the other hand, the basic material sector weakened by 1.32 percent, while the infrastructure sector dropped by 1.12 percent.
While the IDX Composite declined, the LQ45 index rose by 0.26 percent to end at 983.13. Among the LQ45 stocks, PT Medco Energi Internasional (MEDC) was the top gainer with a 3.14 percent increase. Meanwhile, PT Mitra Pack (PTMT) was the biggest loser in the LQ45 index, with a 4.31 percent decline.
Wednesday happened to be the last trading day for this week. The market is closed on Thursday to commemorate the birth of Prophet Muhammad, and on Friday for the Chinese New Year.
The market movement on Wednesday was influenced by several factors, including Indonesia’s foreign exchange (forex) reserves report and China’s economic policy trend.
Indonesia’s forex reserves dropped to US$145.1 billion in January from $146.4 billion the month before. The decrease was mainly due to the government's external debt payments.
“This was higher than the international adequacy standard of around three months of imports and also covered 6.4 months of imports and the government’s external debt service,” Bank Indonesia spokesman Erwin Haryono said on Wednesday, as quoted by cnnindonesia.com news portal.
The central bank assessed that the forex reserves level was still adequate to keep the external sector resilient and maintain the stability of the macroeconomy.
Meanwhile, the China Securities Regulatory Commission (CSRC) announced that it would improve the fundamentals of the capital market, as part of its efforts to stabilize the market and increase investor confidence.
The move is aimed at dampening the sell-off in the past few weeks in the Chinese and Hong Kong capital markets.
"It is still difficult to estimate the consistency of the positive impact from the regulation," Phintraco Sekuritas added, as quoted by bisnis.com news portal.
