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 closes up 0.9% after presidential election announcement
The IDX Composite closed 0.9 percent higher at 7,174.53 on Wednesday, following the official announcement of the president and vice president for the 2024-2029 term and Bank Indonesia’s decision to raise its benchmark interest rate.
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!
A woman walks on March 13, 2024, past an electronic display showing stock movements on the Indonesia Stock Exchange (IDX). The IDX Composite closed 0.9 percent higher at 7,174.53, following the official announcement of the president and vice president for the 2024-2029 term on Wednesday, April 24, 2024. (Antara/Akbar Nugroho Gumay)
T
he Indonesia Stock Exchange (IDX) Composite (IHSG) closed with a sliver of hope on Wednesday following the official announcement of the presidential election results for the 2024-2029 term.
The composite index surged by 0.9 percent to reach 7,174.53. Despite the nearly 1 percent jump, it has yet to surpass the psychological level of 7,200 in Wednesday’s trading session.
The index’s transaction value at the end of the trading day reached around Rp 14 trillion (US$865 million), involving 22 billion shares traded 967,445 times. Around 255 stocks rose, 304 stocks fell and 220 stocks remained unchanged.
Six sectoral indices strengthened, supporting the composite index’s rise, while five other sectoral indices entered the red zone. The technology sector provided the biggest support to the IDX at the end of today’s trading, reaching 2.36 percent.
Additionally, several stocks were observed to be the movers of the IDX.
PT Barito Renewables Energy Tbk (BREN), owned by conglomerate Prajogo Pangestu, became the biggest supporter of the index in the first session Wednesday by contributing 20.6 index points.
Two giant banking stocks also drove the index at the end of trading day, with PT Bank Mandiri (BMRI) contributing 20.7 points and PT Bank Central Asia (BBCA) contributing 15.5 points.
Bank Indonesia’s (BI) interest rate decision also influenced Wednesday’s rise. Despite the decision to raise its benchmark interest rate to 6.25 percent, the index closed higher. The Deposit Facility rate rose to 5.50 percent and the Lending Facility rate to 7 percent.
“The Board of Governors meeting decided to raise the BI rate,” BI Governor Perry Warjiyo said in a press conference on Wednesday.
A CNBC Indonesia Research poll of 14 institutions showed that nine of them projected that BI would still hold its interest rate. However, five projected that BI would raise the interest rate by 25 basis points (bps) to 6.25 percent.
This is the second time BI has raised its benchmark interest rate since the COVID-19 pandemic. Previously, BI raised its benchmark interest rate at the October 2023 meeting by 25 bps, from 5.75 percent to 6 percent.
On the other hand, the index also rose after the General Elections Commission (KPU) officially declared Prabowo Subianto and Gibran Rakabuming Raka as the president and vice president-elect for the 2024-2029 period.
“The KPU has declared presidential and vice presidential candidates No. 2, Prabowo Subianto and Gibran Rakabuming Raka, as the elected presidential and vice presidential candidates for the 2024-2029 term,” KPU Chairman Hasyim Asy’ari said in a plenary session on Wednesday.
This declaration was made after the Constitutional Court rejected all complaints related to the 2024 presidential election dispute.
