Indonesian Stocks Rose after Tapering Announcement

Stock Market News Today

Indonesian stocks advanced with investors reacted to the Fed’s expected tapering while continue to digest earnings.

Jakarta composite added 34.313 points (+0.524%) to 6,586.443 with LQ45 rose 0.32% to 948.168. There were 18.101 billion shares traded worth of Rp11.045 trillion, including transaction of Rp1.05 trillion in negotiation market. Foreign investors purchased a net Rp332.69 billion in regular market. 328 shares rose while 191 declined and 154 unchanged.

On earnings, AGII’s net profit shot up 484% in September from the same period in the previous year of Rp29.52 billion. Meanwhile, SMBR posted a 16.62% increase in net profit at the end of third quarter.

KOBX, an integrated heavy equipment provider, has revised up its 2021 revenue target to $110 million from the original $ 70million after the company announced a 154% increase in revenue in the third quarter.

A number of issuers will distribute interim dividends with a cum date schedule next week, including ITMG with an interim dividend of Rp1,218 per share, LPPF at Rp100 per share, SMAR at Rp185 per share, SMSM at Rp20 per share, and PNGO at Rp50 per share.

Investors look ahead economic growth data for third quarter due tomorrow.

Rupiah continue to weaken. According to JISDOR released Wednesday afternoon, Rupiah retreated 40 (-0.28%) at 14,301 while spot rate weakened 40 points (-0.28%) to 14,335.

Stocks across the globe hovered around records after the Federal Reserves unveiled its gradual reduction in monetary policy and said it will be patient on raising interest rates.

Markets in Singapore, Malaysia and India are closed on Thursday for a holiday.

The Fed announced Wednesday it will begin reducing the pace of monthly bond purchases by $15 billion later this month, in line with market expectations.

In Europe, German factory orders rebounded by 1.3% in September after an 8.8% plunge in August, although not as fast as the 2% rise economists expected.

The European Central Bank is very unlikely to raise interest rates next year as inflation remains too low, European Central Bank President Christine Lagarde said on Wednesday, pushing back on market bets for a move as soon as next October.

Meanwhile from UK, the Bank of England will decide today on whether to raise interest rates for the first time in three years.

Oil prices were swung amid higher U.S. inventories and progress toward Iran nuclear talks that could lead to more supplies. Brent rose 90 cents (+0.99%) at $82.89 per barrel and U.S WTI added 23 cents (+0.28%) at $81.09 a barrel. OPEC+ meets Thursday to review output plans.

Stock Market News Today

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