IHSG strengthens over emergency-use approval for Sinovac vaccine

Jakarta The Jakarta Composite Index (IHSG) ended higher on Tuesday as the market cheered the emergency-use authorization for Chinese pharmaceutical firm Sinovac Biotech’s COVID-19 vaccine.

The index of the Indonesian Stock Exchange (BEI) rose 12.73 points, or 0.2 percent, to reach 6,395.67, while the index of the 45 most liquid stocks (LQ45) climbed by 4.58 points, or 0.46 percent, to touch 996.44.

“The IHSG strengthened today amid positive sentiment from the issuance of emergency-use authorization for the Sinovac vaccine (which is) expected to pave the way for the national vaccination program to break the chain of COVID-19 spread,” Indo Premier Sekuritas analyst Mino said on Tuesday.

The Food and Drug Control Agency (BPOM) on Monday issued emergency-use authorization for Sinovac’s COVID-19 vaccine, which will allow the government to start its mass vaccination program on January 13, 2021, as scheduled.

After opening higher, the IHSG corrected several times before settling in the green until the close of trade.

Stocks in four sectors rose on Tuesday, led by the property sector, which rose 1.59 percent, followed by the financial sector and the mining sector, which increased 1.01 percent and 0.64 percent, respectively.

Stocks in six sectors recorded a correction with the agricultural sector recording the steepest decline of 2.1 percent, followed by the infrastructure sector and the trade sector, which fell 1.27 percent and 0.57 percent respectively.

Tuesday’s trade posted net foreign buys of Rp770.76 billion.

A total of 1,918,313 transactions were recorded during the day, with 30.55 billion shares, worth Rp25.99 trillion, changing hands. Meanwhile, 194 shares rose, 305 shares fell, and 135 shares remained unchanged.

In the Asian regional markets, the Nikkei Index rose 25.31 points, or 0.09 percent, to reach 28,164.34; the Hang Seng Index jumped 368.53 points, or 1.32 percent, to 28,276.75; while the Straits Times Index fell 6.83 points, or 0.23 percent, to reach 2,977.07.

Source: Antara News