JCI, rupiah closer to next psychological level

JAKARTA. The Jakarta Composite Index (JCI) and the rupiah concluded Tuesday's trading by moving closer to the next psychological level. The JCI rose 1.53 percent, or 68.13 points, leaving the 4,500 level to reach 4,533.09 while the rupiah left the 13,600 level.

In the spot market, the rupiah appreciated by 0.78 percent to 13,563 against the greenback as external pressures subsided, said an economist at Bank Permata Josua Pardede.

According to Joshua, optimism drove investors to collect the currency ahead of the release of the sixth economy package, expected to be delivered on Wednesday or Thursday at the latest. Another good sentiment came from deflation in October.

“The deflation data spread expectations that the bank central’s inflation target in 2015 would be achievable. It gave a push to the rupiah to strengthen. The disappointing US economic data gave room for the rupiah to improve,” Joshua said as quoted by Kontan.co.id on Tuesday.

The Institute of Supply Management (ISM) and the Manufacturing Purchase Manager Index (PMI) showed that US manufacturing activity expanded at a slow rate in October, declining from 50.2 to 50.1. A reading above 50 indicates industry expansion, below indicates contraction.

Joshua argued that the global market would now at “wait and see”.

Meanwhile, Indonesia Stock Exchange (IDX) data recorded that 169 stocks increased, 96 stocks declined and the remaining 85 were stagnant at the closing. The transaction value reached Rp 5.26 trillion (US$ 386.34 million) and involved 4.18 billion lots of shares.

All indexes closed in the green zone, except for trade sector index, which dropped 0.09 percent. The basic industries index and the finance sector index led the gain by climbing 3.43 and 2.83 percent, respectively.