The Jakarta Post
The Indonesia Stock Exchange (IDX) has remained optimistic that the domestic stock market will remain stable amid fears of a trade war between the United States and China as well as projections of a US Federal Reserve rate hike for the third or fourth time this year.
The Jakarta Composite Index – the main gauge of the IDX – declined by about 1.49 percent during the third week of March.
IDX development director Nicky Hogan said the situation was normal as it was probably a result of several stock traders reacting to outside sentiments, pointing out that domestic macroeconomic fundamentals remained favorable for the bourse.
“We believe this is temporary,” Nicky said on Sunday as quoted by tempo.co. “If we look at the internal [economic] factors, there is no significant thing to worry about as long as inflation is kept in check and Bank Indonesia maintains its reference rate.”
Nicky expressed optimism over the domestic stock market not tumbling further, stressing that the situation could always be anticipated as long as it aligned with the projections.
The optimism was also reflected in prospective corporate action plans in the bourse this year, including 22 companies proposing for initial public offerings (IPO) out of the total target of 35 this year, Nicky said.
The IDX aims to record an average transaction value of Rp 9 trillion (US$653.4 million) in 2018, a 16.1 percent increase from Rp 7.75 trillion seen last year. The current average transaction value was about Rp 8.9 trillion, Nicky said. (ami/gda)