IHSG ends higher as China’s improving economy lifts sentiment

Jakarta The Jakarta Composite Index (IHSG) ended higher on Monday as investors cheered data showing improving economic growth in China.

The index of the Indonesian Stock Exchange (BEI) rose 16.42 points, or 0.26 percent, to reach 6,389.83, while the index of the 45 most liquid stocks (LQ45) climbed 9.51 points, or 0.96 percent, to touch 988.26.

“The IHSG strengthened today amid (positive) sentiment from the improving performance of China’s fourth-quarter GDP at 6.5 percent, well above the market consensus of 6.2 percent, and the release of third-quarter GDP at 4.9 percent,” Bina Artha Sekuritas analyst M Nafan Aji Gusta said in Jakarta on Monday.

The market is also looking enthusiastically forward to the inauguration of Joe Biden as US president and the announcement of a meeting of Bank Indonesia’s board of directors to set the BI 7-Day Reverse Repo Rate, he added. After opening lower, the IHSG remained in the red before settling in the green until the close of trade.

Stocks in five sectors rose on Monday, led by the consumer sector, which rose 2.22 percent, followed by the manufacturing sector and the miscellaneous industrial sector, which climbed 1.12 percent and 0.95 percent, respectively.

Meanwhile, stocks in five sectors recorded a correction, with the agricultural sector recording the steepest decline of 3.12 percent, followed by the mining sector and the basic industrial sector, which tumbled 2.89 percent and 0.26 percent, respectively.

Monday’s trade posted net foreign sales of Rp195.75 billion.

A total of 1,907,299 transactions were recorded during the day, with 35.49 billion shares, worth Rp23.77 trillion, changing hands. Meanwhile, 195 shares rose, 304 shares fell, and 149 shares remained unchanged.

In the Asian regional markets, the Nikkei Index plunged 276.97 points, or 0.97 percent, to reach 28,242.21; the Hang Seng Index rose 288.91 points, or 1.01 percent, to 28,862.77; while the Straits Times Index fell 13.44 points, or 0.45 percent, to reach 2,991.43.

Source: Antara News