Jakarta, CNBC Indonesia – The Composite Stock Price Index (IHSG) managed to rise and soar in the first session of Tuesday’s trading (3/12/2024), amidst market optimism about the more stable stock index in Indonesia in December 2024.
As of 10:40 AM WIB, the IHSG jumped 1.33% to 7,140.44. The IHSG successfully returned to the psychological level of 7,100, after yesterday’s correction to the 7,040s level.
The transaction value of the index in today’s first session has reached around Rp 4.8 trillion with a transaction volume of 9.3 billion shares and has been traded 611,390 times. 325 stocks gained, 224 stocks declined, and 225 stocks tended to stagnate.
In terms of sectors, the technology sector became the biggest supporter of the IHSG in the first session today, reaching 2.76%.
From the stock side, giant banking issuers dominated the IHSG support, namely PT Bank Mandiri (Persero) Tbk (BMRI) which reached 18.1 index points, PT Bank Central Asia Tbk (BBCA) at 14.9 index points, and PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) at 7.3 index points.
Additionally, telecommunication issuer PT Telkom Indonesia (Persero) Tbk (TLKM) and technology issuer PT GoTo Gojek Tokopedia Tbk (GOTO) also supported the IHSG with 12.8 index points and 9.3 index points respectively.
Below are the stocks supporting the IHSG in the first session today.
The market seems to be optimistic again after yesterday’s IHSG experienced turmoil and touched the psychological level of 7,000. The bright prospects of December due to the potential phenomenon of window dressing make the market more confident that the IHSG can be more stable in December.
On the other hand, there is some good news from the global market, especially from the United States (US), where some officials of the US central bank (Federal Reserve/The Fed) support The Fed’s move to cut its benchmark interest rate at The Fed’s last meeting in 2024.
Fed Governor Christopher Waller expressed support for the potential further interest rate cut at The Fed’s December meeting, with inflation still projected to fall to the 2% target. This statement increased market expectations that an interest rate cut will occur, with a nearly 75% chance.
Waller emphasized that the policy remains tight enough, and an interest rate cut will not drastically change the monetary policy approach. However, the final decision will consider the latest data on inflation, employment, and consumer spending before The Fed’s final meeting this year.
“The policy is still restrictive enough so that further cuts at the next meeting will not drastically change the monetary policy approach and provide enough room to slow down future interest rate cuts, if necessary, to maintain progress towards our inflation target,” Waller said at a central bank symposium organized by the American Institute for Economic Research.
Meanwhile, Atlanta Fed President Raphael Bostic stated that the outcome of the meeting is uncertain.
On the other hand, New York Fed President John Williams, in his written statement, did not discuss the December decision but predicted that additional interest rate cuts will be needed “over time.”
Statements from these key US policymakers have led investors on the Fedwatch tool to increase their expectations for a 25 basis point interest rate cut at the Fed meeting on December 17-18 to 75% and push down the yields of US Treasury two-year bonds.
CNBC INDONESIA RESEARCH
