JCI Climbs 0.33% Ahead of Bank Indonesia Rate Decision
The JCI opened at 6,297.95 as investors awaited Bank Indonesia's rate decision and assessed global market and geopolitical developments.
On Wednesday, the Indonesia Stock Exchange Composite Index (JCI) saw a slight increase of 0.33 percent, opening 20.91 points higher at 6,297.95 points during early trading. The LQ45 index, tracking 45 leading stocks, also showed a 0.25 percent rise, closing at 627.17 points. Analyst Ratna Lim from Phintraco Sekuritas noted that the JCI could test the range of 6,186-6,200 during trading.
Investors are eagerly awaiting the outcome of Bank Indonesia's (BI) Board of Governors Meeting, as they anticipate the central bank to maintain its benchmark BI Rate at 5.75 percent. The widening spread between BI Rate and the federal funds rate has attracted foreign investors, but only a rate hike may occur if the rupiah continues to weaken or if the Federal Reserve resumes its rate-hike cycle.
Falling oil prices are expected to help ease inflationary pressures while investors anticipate credit growth data, which is anticipated to accelerate to 15 percent year on year in August. Geopolitical tensions, including US President Trump's UN address, continue to influence market sentiment.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
