IHSG opens positive as global stock exchanges weaken

The Indonesia Composite Stock Exchange (IHSG) at the Indonesia Stock Exchange (BEI) opened positive on Wednesday morning following the weakening of most global stock exchanges.

The IHSG opened 10.74 points higher, or 0.18 percent, to 5,974.56. Meanwhile, the group of 45 leading stocks, or the LQ45 index, climbed 2.93 points, or 0.33 percent, to 891.85.

“The weakening of major global indexes has cast a shadow on the IHSG that is projected to fluctuate and incline,” the Phintraco Security research team wrote here on Wednesday.

The IHSG potentially weakened, with support levels of 5,930-5,950 and resistance levels at 6,030-6,050, especially during initial trade. Meanwhile, the IHSG has the possibility of closing positive during trade, according to the team.

Moreover, market players have taken precautionary measures for the realization of the Indonesian GDP that is projected to contract during the first quarter of 2021.

However, the trend showed that market players have set the price on account of the possibility of the GDP contracting since mid-March of 2021. Such a condition can potentially curb sell-off during trade this Wednesday.

On the other hand, the increase in the manufacturing index and inflation by April 2021 respectively to 54.6 and 1.42 percent (year-on-year) indicated economic recovery accelerating in the early second quarter of 2021.

One area of concern is the rupiah’s exchange rate that potentially weakens, fueled by growing concerns on the Fed’s tightened monetary policy, it stated.

In the Asian regional markets on Wednesday, the Hang Seng Index added 75.18 points, or 0.26 percent, to 28,632,32, while the Straits Times Index declined 20.09 points, or 0.63 percent, to 3,159.04. Meanwhile, the Japanese and Chinese stock markets were closed.

Source: Antara News

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