JAKARTA (Yosefardi) – Composite index of the Indonesia Stock Exchange (IDX) opened up 0.25% at 4857 this morning following regional markets.
Reuters however reported Asia stocks make cautious gains before data splurge. While crude price and gold inched down 0.09% ang 0.08% to US$105.74 per barrel and US$1,320 per ounce.
In Jakarta bourse, Bumi Resources jumped 4.65%, Astra International gained 1.36%, Bank Rakyat Indonesia rose 0.9%, and BW Plantation increased 0.8%.
More pre-election surveys point to narrowing gap between Jokowi and Prabowo continue to affect investors’ mood. Other than politics, rupiah’s downfall and correction of palm oil prices, investors await the release of May 2014 trade statistics and June inflation scheduled Tuesday (July 1st).
Stock markets tends to be quiet as the country enters the fasting month or Ramadhan. The concern arises is the supply and prices of consumer goods. Will they be stable and controlled during one month ahead? The increasing demand and lack of supply would boost the prices by 5-10% as expected. But retail companies will get a boost on revenues during the fasting month and Idul Fitri.
Meanwhile amid the current depreciation of rupiah against the US dollar, which have reached Rp12,000, Bank Indonesia opts not to intervene as rupiah current level is considered as not so volatile. Market perception over rupiah is a common sense as main factors affecting the rupiah at the moment are growing demand over the dollar and the country’s fundamental economy, mainly trade deficit and the import issues.