Weekly Market Update: IDX Slips 0.55 Percent as Central Bank Holds Benchmark Rate Steady
Jakarta. The Composite Stock Price Index of the Indonesia Stock Exchange (IDX) declined by 0.55 percent this week, closing at 7,295.095 compared to 7,335.545 at the end of the previous week.
The market capitalization for the week experienced a slight shift, decreasing by 0.27 percent from Rp 11,603.01 trillion ($743.99 billion) the previous week to Rp 11,572.22 trillion at the week's close.
The average daily transaction frequency also saw a 2.01 percent decline, totaling 1,268,643 transactions compared to 1,294,615 transactions the previous week. Meanwhile, the average daily stock transaction volume experienced a 13.08 percent decrease throughout the week, amounting to 15.406 billion shares compared to 17.723 billion shares the week before. The average daily stock transaction value underwent a 26.56 percent change, decreasing to Rp 10.15 trillion from Rp 13.82 trillion the previous week.
Foreign investors recorded a net selling value of Rp1.05 trillion on Friday, contributing to a year-to-date net buying value of Rp 21.08 trillion for foreign investors in 2024.
On Wednesday. Bank Indonesia (BI) decided to keep the benchmark interest rate at 6 percent during the Board of Governors Meeting on Feb. 20-21, 2024, maintaining the rate since October.
The central bank anticipates a rise in global economic growth despite ongoing financial market uncertainty. The global economy is expected to expand by 3.1 percent in 2023 and 3 percent in 2024, surpassing the initial projections of 3 percent and 2.8 percent, respectively.
On Tuesday, the Ministry of Finance announced an extension of value-added tax (VAT) incentives for electric cars until December 2024. The government decided to cover 10 percent of the VAT burden. As a result, consumers will only be required to pay 1 percent of the VAT on the selling price of electric cars.
This reduction is applicable provided that the electric vehicle incorporates 40 percent locally-made components. Currently, only the Hyundai Ioniq 5 and Wuling Air EV are eligible.
In the US, stocks clung to modest gains on Wall Street Friday, giving the market another record high and a winning week.
The listless day for stocks capped off a mostly solid week of earnings where the technology sector once again powered the market higher. The sector has been the driving force behind a rally that started in October.
The S&P 500 index rose 1.77 points, or less than 0.1 percent, to 5,088.80. That marks another record high for the benchmark index and its sixth winning week in the last seven.
Dow Jones Industrial Average rose 62.42 points, or 0.2 percent, to 39,131.53. The Nasdaq slipped 44.80 points, or 0.3 percent, to 15,996.82.
Markets were mostly higher in Europe and Asia. Tokyo’s markets were closed for a holiday, a day after they surged to an all-time high.
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