DX Composite (IHSG) 3 Times Prints the Highest Record!

            IDX Composite  (IHSG) has successfully recorded a strengthening this week, even setting an all-time high 3 times. The large inflow of foreign capital into the country became one of the factors that boosted the IDX Composite performance, as well as domestic economic data. According to data from Refinitiv, the JCI rose 1.25% this week to 6,815.607. The stock of the pride of the country for the first time set an all-time high of 6,806.730 on Monday (7/2), then rose again the day after at 6,860,750. Then it rose again last Thursday at 6,874.351 before finally being corrected.

            Throughout this week, foreign investors recorded a net buy of Rp7.05 trillion in the regular market, and when added to the cash and negotiable market, the total amounted to more than Rp7.6 trillion. The transaction value was recorded at more than Rp68 trillion. IDX composite is even still able to strengthen even though the United States central bank (The Fed) is expected to raise interest rates by 50 basis points next month after the release of inflation data which shot up to 7.5% year-on-year (YoY).

            Domestically, Bank Indonesia (BI) indicated that it would not raise interest rates this year, which had a positive impact on the JCI. “Bank Indonesia will continue to maintain the interest rate at 3.5% until there are signs of a fundamental increase in inflation, our prediction will occur in 2023, and for that, we will review the stand of monetary policy, especially interest rates in the third quarter of 2015. this,” said Perry. Perry added that the policies taken by BI will depend on inflation data, economic growth, and various macro, monetary and other financial system indicators.

            In addition, BI also reported an increasingly optimistic level of consumer confidence earlier this year. The Consumer Confidence Index (IKK) survey released by BI showed 119.6 in January, higher than the previous month’s 118.3. IKK uses the number 100 as the total measure. Below it is pessimistic, above it is optimistic. When consumers are more optimistic, spending will increase and ultimately spur economic growth.

Feb 12, 2022, CNBC Indonesia