Asian regional stocks rallied as the market seemingly responded to the ongoing effects of Chinese stimulus and expectations for global economic growth this year.
Jakarta (MidLand) – The Indonesian Stock Exchange (BEI) Composite Stock Price Index (IHSG) closed higher on Thursday afternoon after Asian stocks strengthened.
JCI closed up 3.62 points or 0.05% at 7,744.52. Meanwhile, the group of 45 major stocks in the LQ45 index fell 6.60 points or 0.68% to 970.54.
“Asian regional stocks are strengthening, which appears to be a response to the ongoing effects of Chinese stimulus and expectations that the global economy will grow this year,” research group Pilarmas Investindo Sekuritas Indonesia said in its Jakarta office on Thursday.
The Chinese government will provide cash assistance to disadvantaged groups, including the extremely poor and orphans, as well as mandate some social security benefits for university graduates who have not found work within two years of graduation, in an effort to boost employment.
Market participants see this stimulus as an effort to maintain people’s purchasing power to support the increase in public consumption or public economy, so as to contribute to the improvement of China’s domestic economy.
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Meanwhile, the Organisation for Economic Co-operation and Development (OECD) expects global economic growth to improve this year.
In its latest research, the OECD forecasts the outlook for global economic growth this year at 3.2% from 3.1% previously, in line with global growth stabilizing as headwinds from rising central bank interest rates fade and falling inflation boosts household income.
Nationwide, Bank Indonesia (BI) revealed that credit distribution in August 2024 grew by 10.9% year-on-year (y/y), which is lower than the previous month’s growth of 11.7% (y/y).
The market believes that slow credit growth will affect the performance of the banking sector and also reduce government consumption as one of the main pillars of economic growth.
Opening lower, JCI settled in negative territory until the close of the first trading session. In the second session, JCI moved into the green zone until the close of stock trading.
Based on the IDX-IC sector index, seven sectors rose, with real estate posting the highest gain with 2.07%, followed by healthcare and technology which rose 1.75% and 1.60%, respectively.
Meanwhile, four sectors were corrected, where the transport and logistics sector fell the most, i.e. minus 0.78%, followed by the financial sector and the non-staple consumer goods sector, which were minus 0.62% and minus 0.60%, respectively.
The stocks that strengthened the most were CRSN, TRON, MEJA, MITI and PANI. Meanwhile, the stocks that weakened the most were ASPI, MPOW, MANG, OASA and PMMP.
The stock trading frequency was recorded at 1,370,442 transactions with the number of traded shares amounting to 22.57 billion shares worth IDR 17.58 trillion. A total of 281 shares increased, 310 shares decreased and 211 shares remained unchanged.
Regional Asian stocks this afternoon included the Nikkei Index rising 1,055.30 points or 2.79% to 38,925.60, the Hang Seng Index strengthening 795.48 points or 4.16% to 19,924.58, the Shanghai Index strengthening 104.3 points or 3.61% to 3,000.94, and the Straits Times Index rising 4.04 points or 0.11% to 3,587.31.
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Reporter: Muhammad Heriyanto
Publisher: Agus Salim
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