IHSG opens higher as Asian regional markets corrected on Monday

Jakarta (ANTARA) - The composite share price index (IHSG) at the Indonesia Stock Exchange (BEI) strengthened on Monday morning, as the Asian regional markets experienced a correction.

The IHSG gained 4.87 points, or 0.08 percent, to 6,461.41. The index of the 45 most liquid stocks rose 1.23 points, or 0.12 percent, to 1,034.67.

"The statement by (the US President Donald) Trump and the policy of The Fed indicating a decline in the interest rate, coupled with a stable outlook of the Indonesian economy and the investors' anticipation of companies posting second-quarter profit serve as a positive stimuli to the IHSG in this week's trading," Valbury Sekuritas chief researcher Alfiansyah noted on Monday.

On the external side, an official of The Fed emphasized the need for the institution to act promptly in the midst of the global economic slowdown. It would be more prudent for The Fed to take preventive action rather than handle possible crisis arising from the global economic slowdown and the escalation of trade tensions.

The absence of an agreement on the Huawei issue can potentially fuel the trade war tensions. To stall further deterioration in the global economy, The Fed is expected to adopt a serious outlook to cut its interest rate.

On the other hand, Trump openly stated that he wanted the greenback to trade lower to equalize other nations' currencies that have experienced a depreciation. Trump has rallied against what he called unfair trade practices targeting the US. Trump's comment may spark speculation that he could order the sale of US dollars.

Asian regional markets that weakened on Monday morning comprised Nikkei, declining 87.53 points, or 0.41 percent, to 21,379.46; the Hang Seng plunging 242.35 points, or 0.84 percent, to 28,523.04; and the Straits Times Index weakening 24.66 points, or 0.73 percent, to 3,353.3.

Source: ANTARA News

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