IDX index strengthens on US-China improving ties

The US government's agreement to extend the permit of Huawei Technologies Co Ltd to cooperate with a US company is one of the positive catalysts for the Asian stock exchange, including the IDX today.

Jakarta (ANTARA) - The composite share price index of the Indonesia Stock Exchange (IDX) rose 15.19 points on Tuesday morning, fueled by positive external sentiment over improving US-China ties.

The IDX index gained 15.19 points, or 0.24 percent, to reach 6,311.90. The index of the 45 most liquid stocks, or LQ45, climbed 3.67 points, or 0.37 percent, to 987.80.

"The US government's agreement to extend the permit of Huawei Technologies Co. Ltd to cooperate with a US company is one of the positive catalysts for the Asian stock exchange, including the IDX today," Valbury Sekuritas Chief Researcher Alfiansyah remarked in Jakarta on Tuesday.

The US President Donald Trump's statement of relations with China being in good condition had added to the positive catalytic effect on the stock market, Alfiansyah stated.

"Trump has stated that both sides are holding productive talks. Trump is confident of the US economy getting better after the US reached an agreement with China," he noted.

On the internal side, the positive sentiment that the government will continue to strengthen the purchasing power of the public, with consumers remaining the key engine of economic growth, has psychologically influenced investors, he pointed out.

"These factors may strengthen the IDX index on Tuesday," he stated.

Technically, the IDX index appeared to find support as a reference to move upward and reach resistance level, Indosurya Bersinar Sekuritas Director William Surya Wijaya stated.

"The IDX index is forecast to stay within the range of 6,123 to 6,372 points. If the index is corrected, the correction is something normal and can be used as an opportunity to accumulate purchases since in the long run, the IDX index will still show an upward trend," he remarked.

Source: ANTARA News

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