The Composite Stock Price Index (IHSG) of the Indonesia Stock Exchange (IDX) closed higher on Monday (29/7) afternoon, following the strengthening of the Asian and global stock exchanges. IHSG closed up 0.72 points or 0.01% to 7,288.89. Meanwhile, the group of 45 leading stocks or the LQ45 index rose 0.21 points or 0.02% to 920.60.
“Asian stock exchanges are moving in the middle of a week full of economic data releases. This week, three central banks will release their interest rates. In the United States (US), it seems that the Fed is predicted to maintain interest rates at 5.25% to 5.50%,” said the Pilarmas Investindo Sekuritas Research Team in its study in Jakarta, Monday.
From the UK, market players assess that the Bank of England (BoE) will cut interest rates this week. It is predicted that interest rates will be at 5% after being at 5.25%.
Meanwhile, in Japan, interest rates are predicted to remain at 0.1% this week. However, some believe that the Bank of Japan (BoJ) will cut interest rates this week.
Market players are also looking forward to the release of US employment data. Non-farm payrolls are predicted to weaken after being at the level of 206K in the previous month to 185,000 in July 2024.
Meanwhile, the US unemployment rate is predicted to remain at 4.1%. However, this indicates that employment data is starting to show support for at least one interest rate cut between September and December this year.
Also read: IHSG increasingly steady climbing to 7,300
In China, this week the government will release the NBS Manufacturing PMI Index data which is expected to decline from the previous 49.5 to 49.3 this month. This decline indicates that manufacturing activity in China is increasingly moving from the expansion zone, indicating that the Chinese economy is still in the contraction zone.
Domestically, investment realization in the second quarter of 2024 was IDR428.4 trillion or an increase of 22.5% year on year (yoy) and an increase of 6.7% quarter on quarter (qoq). Investment realization was dominated by foreign investment (PMA) which grew 16.6% (yoy) or higher than the previous quarter which was only 15.5% (yoy) so that this indicates the high confidence of market players in the economy in Indonesia.
Opening stronger, IHSG remained in positive territory until the close of the first session of stock trading. In the second session, IHSG remained in the green zone until the close of stock trading.
Also read: IHSG Closes Stronger Above 7,000
Based on the IDX-IC Sectoral Index, six sectors strengthened, led by transportation & logistics by 1.20%, followed by non-primary consumer goods and raw materials by 1.12% and 0.77% respectively. Meanwhile, five sectors fell, namely infrastructure, which fell the deepest by minus 0.64%, followed by health and primary consumer goods, which fell by minus 0.48% and 0.46% respectively.
The stocks that experienced the biggest gains were CPBE, PURI, GTRA, AUTO, and KPIG. While the stocks that experienced the biggest declines were ISEA, ITMA, GUNA, BULL, and BLES.
The frequency of stock trading was recorded at 941,407 transactions. The shares traded were 14.52 billion shares worth Rp10.36 trillion. The price of 258 stocks rose, 282 stocks fell, and 252 did not move.
The regional Asian stock exchanges this afternoon included the Nikkei index strengthening by 801.20 points or 2.13% to 38,468.60; the Hang Seng index strengthening by 217.02 points or 1.28% to 17,238.33; the Shanghai index strengthening by 1.41 points or 0.05% to 2,892.31; and the Strait Times index strengthening by 17.70 points or 0.52% to 3,444.17. (Ant/Z-2)
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