Composite Stock Price Index Has The Potential To Soar Even Amid Mixed Sentiments

Illustration (Photo: Antara)

JAKARTA - Indonesia Stock Exchange (IDX) Composite Stock Price Index (IHSG) at the weekend has the potential to strengthen amid a variety of sentiments in the capital market.

IHSG opened up 26.51 points, or 0.46 percent, to 5,824.11. The benchmark LQ45 index rose 6.43 points, or 0.75 percent, to 868.96.

"IHSG is expected to strengthen in today's trading, although the market catalyst is fairly varied both from external and internal factors for the IDX market", said Valbury Securities Head of Research, Alfiansyah, in his study in Jakarta, reported by Antara, Friday, May 21.

Sentiment from abroad is the minutes of the meeting of the Central Bank of the United States, Federal Reserve (Fed), which shows some policymakers open the possibility to discuss reducing bond purchases at the upcoming meeting.

Some Fed officials are considering changes in monetary policy based on a strong and sustainable economic recovery.

Meanwhile, the global economy and Indonesia are still faced with the threat of COVID-19 cases soaring in India. Unresolved conditions in India can cause economic uncertainty to various countries, including Indonesia.

In addition, the projected increase in inflation in the US also has the potential to threaten the momentum of economic recovery in Uncle Sam's Country if followed by tightening monetary policy by the Fed. The condition will also affect capital flows globally.

From within the country, the government proposes a range of macroeconomic indicators for the preparation of the state budget plan or RAPBN 2022 to the House of Representatives. In this proposal, the target economic growth is in the range of 5.2 percent to 5.8 percent.

Finance Minister Sri Mulyani Indrawati said the proposal takes into account various dynamics, uncertainty risks, potential global and national economic recovery in the next year. Another consideration is that COVID-19 can continue to be controlled and the banking intermediation function can be restored.

Asian regional stocks this morning include the Nikkei Index gaining 212.97 points, or 0.76 percent, to 28,311.22, The Hang Seng index rose 2.84 points, or 0.01 percent, to 28,453.13, and the Straits Times Index gained 1.65 points, or 0.05 percent, to 3,108.16.