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IDX Composite surges for second straight day
The IDX Composite rose 0.6 percent to 7,373.9 on Thursday. Positive momentum from international and domestic factors contributed to the rise.
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Attendees look at stock trading movements on Jan. 2, 2024, during the trade opening ceremony at the Indonesia Stock Exchange (IDX) in Jakarta. The IDX Composite (IHSG) rose 0.6 percent to 7,373.9 on March 7, 2024. (Antara/Asprilla Dwi Adha)
T
he Indonesia Stock Exchange (IDX) Composite (IHSG) continued its upward trajectory for the second consecutive day, closing up 44.16 points or 0.6 percent at 7,373.9 on Thursday.
The total transaction value on the stock exchange reached Rp 11.2 trillion (US$716.14 million). Among the listed stocks, 287 gained, 233 corrected and 248 remained flat.
Most stock sectors closed higher, with the raw goods sector leading the gains with a 2.1 percent surge. Following suit were the energy sector, with a 0.9 percent increase, and the infrastructure sector, which gained 0.7 percent.
Conversely, the technology sector saw a 2.5 percent decline, while the industrial and non-primary consumer goods sectors each slipped by 0.3 percent.
Top performers of the day were PT Maja Agung Latexindo (SURI) with a 14 percent surge, closely followed by PT Diagnos Laboratorium Utama (DGNS), which jumped by 13.9 percent.
PT Mitra Pedagang Indonesia (MPIX) faced the steepest decline, hitting the lower auto rejection (ARB) limit with a 24 percent drop. Meanwhile, PT Sumber Sinergi Makmur (IOTF) fell by 12.6 percent.
The morning session of trading already saw the IDX Composite strengthening by 37.5 points or 0.51 percent to 7,367.3.
Analysts from Pilarmas Investindo Sekuritas attributed this positive momentum to a mix of international and domestic factors.
Internationally, market sentiment was buoyed by United States Federal Reserve Chairman Jerome Powell's statement on Wednesday before the US Congress, indicating a potential interest rate cut later in the year.
Powell emphasized that any rate adjustments would be contingent on sustained progress toward the Fed's 2 percent inflation target.
"The market responded to the statement as an indication of strengthening the prospect of cutting the benchmark interest rate this year," Pilarmas Investindo Sekuritas wrote on Thursday, as quoted by Investor Daily.
In addition, the positive sentiment was also supported by China's recorded trade surplus of $125.16 billion in February 2024.
On the domestic front, Pilarmas pointed out that foreign exchange reserves in February stood at $144 billion, slightly lower than the previous month's $145.1 billion.
Despite this decrease, the reserves remained robust, equivalent to financing 6.5 months of imports or 6.3 months of imports and servicing the government’s external debt, well above the international adequacy standard of around three months of imports.
