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JCI ends strong on first trading day after Idul Fitri
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The Jakarta Composite Index (JCI) was bullish throughout its trading day on Monday as it recorded an increase of 1.3 percent to 6,289.61. (Antara/Sigid Kurniawan)
T
he Indonesian stock market concluded its first trading day after the Idul Fitri holiday on a bullish note, thanks to possible easing monetary policy and a favorable domestic economic condition.
The Jakarta Composite Index (JCI) was bullish throughout its trading day on Monday as it recorded an increase of 1.3 percent to 6,289.61. Shipbuilder PT Steadfast Marine’s stock recorded the highest rise at 9.94 percent, followed by state-owned miner PT Aneka Tambang at 7.59 percent and diversified petrochemical giant PT Barito Pacific at 7.58 percent.
But the bull market was not experienced by Indonesia alone. Other global stock markets such as the United States’ Dow Jones and S&P 500 Index, and Asian stock indexes like Japan’s Nikkei Index and Hong Kong’s Hang Seng Index were also in the green.
Reuters reported that MSCI’s index of emerging market stocks jumped 1 percent following the deal between the US and Mexico on Friday, averting tariffs on Mexican goods.
Investors are anticipating the Federal Reserve cutting its interest rate during next week’s meeting due to the US’ poor jobs data.
Securities firm Pilarmas Investindo Sekuritas research and investment director Maximilianus Nico Demus told The Jakarta Post on Monday that he agreed the US-Mexico deal had helped to create euphoria in the global stock market. However, he was not so sure on the Fed’s rate cut.
“The rate cut will indeed benefit emerging markets like Indonesia, but the US’ economic data are still sound enough currently so I’m not so sure that the Fed will cut its interest rate soon,” he said via text message.
