Indonesia composite index estimated to strengthen

Jakarta (ANTARA) - The Indonesian composite Index (ICI) of the Indonesia Stock Exchange (IDX) on Tuesday is predicted to turn up as Asia regional stock markets rise.

The ICI opened up 18.54 points or 0.29 percent to 6,317.57, while the 45 leading stocks or the LQ45 index moved up 4.66 points or 0.46 percent to 1,012.02.

"The ICI is expected to have a chance for a rebound in trading today, after being corrected throughout the past week amid markets that are watching the Fed's policy announcement," Head of Research at Valbury Securities, Alfiansyah, said here on Tuesday.

The market is now awaiting and observing the announcement of a reduction in interest rates by US central bank The Federal Reserve (The Fed) on July 31, 2019 local time, which is expected to decline by 25 bps (basis point).

However, the market is speculating on how far or how many times the interest rate can be cut this year given US economic indicators that previously varied such as solid employment figures and even the lowest in the past 50 years and wages that are still growing.

On the other hand, inflation was below the target of two percent (year on year/yoy), economic growth slowed in quarter II-2019 to 2.1 percent compared to 3.1 percent (yoy) last year, as well as the curve of the bond results which several times reversed amid the real impact of trade war with China.

Asian regional exchanges this morning included the Nikkei index which rose 141.14 points (0.65 percent) to 21,757.94, the Hang Seng index which increased 38.36 points or 0.14 percent to 28,144.77, and the Straits Times index which went up 0.18 points (0.01 percent) to the position of 3,346.57.

Source: ANTARA News

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