JAKARTA (Yosefardi) – Composite index of the Indonesia Stock Exchange (IDX) opened up 0.04% at 4,196 this morning to tracking gains in regional markets.
Hong Kong’s Hang Seng gained 1.86% and Australia’s All Ordinaries rose 1%. While Shanghai and Malaysia’s KLSE opened down.
In Jakarta bourse, Alam Sutera increased 3.64%, Bank Mandiri gained 1.4%, and London Sumatera rose 1.34%. While Telkom lost 1.14%, Kalbe Farma fell 1,48%, and Indofood down 1.54%.
Today, the stock market and rupiah movements would be influenced by the August inflation. Market observers say the composite index of the Indonesia Stock Exchange (IDX) tend to continue its rebound if the inflation was within expectation (below 1.5%).
The International Monetary Fund (IMF) had also revised inflation target for Indonesia to 9.5% this year, from initial target 6%, along with the expected decline in export and investment. IMF also revised down Indonesia’s economic growth to 5.25% this year, from initial 6.3%.
Fitch Ratings also says the recent fall of the Indonesian rupiah will have a mixed impact on rated Indonesian industrial companies, with those with significant foreign currency mismatch most exposed.
Companies which are most exposed to the falling rupiah include PT Lippo Karawaci Tbk, PT Alam Sutera Tbk, PT Multipolar Tbk, PT Kawasan Industri Jababeka Tbk, PT Garuda Indonesia Tbk, PT Japfa Comfeed Indonesia Tbk, PT Fajar Surya Wisesa Tbk, and PT Berlina Tbk.
Palm oil producers are likely to benefit from a depreciating rupiah as the selling price of their product is quoted in USD. (yohanneso@yosefardi.biz)