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IDX COMPOSITE - The IDX Composite Index (IHSG) fell 0.61% on Friday, February 23, 2024, closing at 7,295.10. The decline was led by the financial sector, which fell 0.94%.
Other sectors that declined significantly included the energy sector (-0.18%), the industrial sector (-0.50%), and the transportation & logistics sector (-0.54%).
The decline in the IHSG can be attributed to several factors, including profit-taking by investors after the announcement of the election results and concerns about a slowdown in the global economy.
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Profit-Taking
The IHSG had risen in the previous four trading sessions, following the announcement of the election results. Investors were taking profits after the recent gains.
Global Economic Concerns
There are concerns about a slowdown in the global economy, which could impact demand for Indonesian exports. This could weigh on the Indonesian rupiah and corporate earnings.
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Sectoral Analysis
The financial sector was the biggest decliner on Friday, as investors sold off bank stocks. This was likely due to concerns about rising interest rates and deteriorating credit quality.
The energy sector also declined, in line with the fall in global crude oil prices.
The decline in oil prices was triggered by concerns about a slowdown in the global economy, which could reduce demand for energy.
The industrial and transportation & logistics sectors also declined, weighed down by the weakening of the rupiah against the US dollar.
The weakening of the rupiah can increase production costs and squeeze profit margins for companies in these sectors.
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Outlook
The outlook for the IHSG in the near term is uncertain. Investors will be closely monitoring developments in the global economy and the rupiah exchange rate.
