Jakarta. The Indonesia Stock Exchange (IDX) composite index (IHSG) concluded the week on Friday, Jan. 5, 2024, with a robust gain of 1.07 percent, reaching a closing position of 7,350.619 from last week's 7,272.797. Notably, IHSG set a new all-time high on Thursday at 7,359.763.

IDX market capitalization experienced a 0.91 percent increase from Rp11,674.06 trillion ($752.5 billion) the previous week to Rp11,780.02 trillion, marking the highest market capitalization in history.

The gain is supported by expectations that The Federal Reserve will lower the benchmark interest rate in the first quarter of 2024. The CME Fedwatch Tool indicates a 71.4 percent probability of a cut in The Fed Rate during the March 2024 FOMC meeting.

Indonesia's inflation rate eased to 2.61 percent year-on-year (YoY), surpassing expectations of 2.72 percent and marking a decline from the previous month's 2.86 percent. Core Inflation followed suit, registering a cooler 1.80 percent YoY, below the forecast of 1.85 percent and November's figure of 1.87 percent.

Coordinating Economic Minister Airlangga Hartarto said that 2023's inflation was the lowest in 20 years. "The various policy programs between the central and regional governments have successfully restrained further increases in food prices. Moving forward, we will continue to remain vigilant and monitor domestic and global phenomena that could impact inflation," said Airlangga on Wednesday.

Daily stock transaction frequency rose by 29.83 percent to 1,154,208 transactions compared to 888,989 transactions the previous week.

Conversely, the average daily stock transaction value saw a 12.71 percent decrease, amounting to Rp8.34 trillion from Rp9.56 trillion the week before. The average daily stock transaction volume slightly declined by 1.63 percent throughout the week, reaching 16.28 billion shares compared to 16.55 billion shares the previous week.

On Friday, foreign investors recorded a net purchase value of Rp1.40 trillion, bringing the total net purchase for the year 2024 to Rp2.87 trillion.

Meanwhile, on Jan. 5, general contractor company Asri Karya Lestari (ASLI) made its stock market debut on the Main Board of BEI. ASLI is the first company to be listed on BEI in 2024, operating in the Infrastructure sector with a focus on Building Construction.

In the bond and sukuk (Islamic bond) market, two issuances from one issuer with a total value of Rp 2.23 trillion were recorded in 2024. This adds up to a total of 542 bond and sukuk issuances listed on the IDX, with an outstanding nominal value of Rp459.28 trillion and $32,362 million from 127 issuers. 

Government bonds (SBN) listed on the BEI consist of 186 series with a nominal value of Rp5,726.74 trillion and $502.10 million, while Exchangeable Bond and Sukuk (EBA) total 10 issuances worth Rp3.25 trillion.