The Jakarta Post
The Jakarta Composite Index (JCI) increased by 2.38 percent to 5,930.13 during Thursday’s morning session as foreign investors brought their funds back to the trading floor.
They recorded a net buy of Rp 421.4 billion (US$29.5 million) during the session.
Banking stocks mostly supported JCI’s movement.
PT Bank Negara Indonesia (BNI) increased by 6.6 percent to Rp 7,675 per share, PT Bank Rakyat Indonesia (BRI) saw its price increase by 4.86 percent to Rp 3,020 per share and PT Bank Central Asia (BCA) increased by 2.5 percent to Rp 22,550 per share.
The rise of the big banks’ stocks also pushed the big stocks index, the LQ45, to increase by 2.94 percent to 949.82.
On Thursday, the Supreme Court inaugurated Perry Warjiyo as the new Bank Indonesia governor for the 2018 to 2023 term. Perry stated that the central bank would be more responsive in terms of the reference rate policy.
His predecessor, Agus Martowardojo, preferred to move carefully to raise BI’s seven-day repo rate and took secondary options such as making bilateral swap arrangements with other countries to stabilize the rupiah before finally increasing the rate by 25 basis points (bps) last week.
Many analysts stated that the 25 bps would not be enough to respond to the aggressive stance of the United State’s Federal Reserve to normalize its rate. (bbn)