JAKARA - Capital market observer Reydi Octa said the continued strengthening (rally) of the Composite Stock Price Index (IHSG) was supported by domestic macroeconomic stability, ranging from inflation control and low interest rate expectations.
The JCI was recorded again touching a new high or all time high (ATH) level at 9,075.41 at the close of Thursday afternoon trading.
"Strong and dominant domestic fund flows in the JCI, make prices more resistant to shocks from the outside," said Reydi, quoting Antara.
In addition, he continued that the strengthening of the JCI was also supported by the relatively solid performance of large emitters, such as emitters in the banking sector and big cap stocks (with large market capitalization).
"The valuation of the JCI is considered cheaper than the valuation of the developed country's stock exchange, making investors still believe that the JCI can be stable, so that external pressure does not directly make aggressive selling actions," said Reydi.
From abroad, he explained that the lingering sentiment was uncertainty about the direction of the developed countries' monetary policy, the movement of the US dollar, and the recent escalation of geopolitical tensions.
However, according to him, the impact of this sentiment on the Indonesian stock market is likely to be limited due to the strength of the domestic investor base.
"However, the impact on the domestic market is limited because domestic investor funds dominate the JCI," said Reydi.
Meanwhile, regarding sectors that support the strengthening of the JCI, Reydi revealed that they include the banking sector, energy, and conglomerate stocks with large market capitalizations.
"The sectors that support the JCI are banking, energy, and still from large-cap conglomerate stocks. The three of them support the JCI," said Reydi.
Data on the closing of trading on the Indonesia Stock Exchange (IDX) on Thursday afternoon, the JCI closed up 42.83 or 0.47 percent to 9,075.41.
Meanwhile, the group of 45 flagship stocks or the LQ45 index rose 7.34 points or 0.83 percent to 889.43.
The frequency of trading shares was recorded as many as 3,373,659 transactions with a total number of shares traded as many as 50.63 billion shares worth Rp28.25 trillion. A total of 339 shares rose, 331 shares fell, and 113 did not move in value.
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