Stock price index strengthens after Eid al-Fitr holidays

Jakarta (ANTARA) – The Indonesia Stock Exchange’s Composite Stock Price Index on Monday strengthened after the lengthy holidays of Eid al-Fitr 1440 Hijri.

The Composite Stock Price Index opened 68.18 points higher, or 1.1 percent, to 6,277.29, while the index of the 45 leading stocks, or LQ45, inched up 17.47 points, or 1.78 percent, to 1,000.35

Head of Research at Valbury Sekuritas Alfiansyah remarked here on Monday that transactions on the stock exchange after the long Eid Al-Fitr holidays ended had yet to fully normalize.

“However, the Composite Stock Price Index has a likelihood of strengthening in stock trading this week, backed by domestic factors and also positive external factors,” Alfiansyah noted.

Community consumption during the month of Ramadan and Eid al-Fitr is expected to drive public consumption and impact prices in May and June. The Central Agency of Statistics will release inflation data for May 2019 this afternoon.

“The inflation data presented by the agency will be a ‘warning’ for the government in adopting price-control measures,” Alfiansyah remarked.

Externally, trade disputes have raised worries over protracted battles and potentially hinder global economic growth. US President Donald Trump remarked that talks with China were going well, though a senior Chinese diplomat was quick to counter his statement by affirming that provocations in trade disputes were open economic terrorism.

“The ambiguity surrounding the trade war has rocked global investors,” Alfiansyah pointed out.

Among the Asian regional stock exchanges this morning, the Nikkei index strengthened 207.31 points, or 0.99 percent, to 21,092.02; the Hang Seng index increased 406.48 points, or 1.51 percent, to 27,371.76; and the Straits Times index declined 22.1 points, 0.7 percent, to 3,188.39.

Source: Antara News