Equityworld Futures, Jakarta – rate Composite Stock Price Index (JCI) rose slightly during the week for the period from 3 to 10 February 2017. A number of internal sentiment and buying by foreign investors pushing up the JCI.

Citing reports PT Ashmore Asset Management Indonesia, Saturday (11/02/2017), stock index rose 0.20 percent from a range of 5,360 on Friday, February 3, 2017 became 5371 on Friday, February 10, 2017.

The sell-off of leading shares at the close of stock trading ahead of the weekend has reduced profits at the beginning of the trading session. Small capitalization stock index performance was more enough to survive. Meanwhile, LQ45 stock index rose 0.1 percent on a weekly basis.

 

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Action continued buying by foreign investors in the stock market. Noted buying by foreign investors reached Rp 997.68 billion (assuming an exchange rate of Rp 13 302 per US dollar) from the period of last week’s US $ 56 million.

In research Ashmore said that buying foreign investors optimistic about the macro economy because Indonesia. Plus the international rating agency Moody’s that improve Indonesia’s rating to stable.

In the bond market, bond index rose 0.6 percent on a weekly basis. Bond yields also rose 10 basis points. However, unfortunately, the foreign investor to sell for the first time in 2017.

So what are the sentiments that influence the global stock market and stock index this week? From external sentiment, the president of the United States (US) Donald Trump will release tax reform in 2-3 this week. That prompted a rally in the stock market.

Previous market has been waiting for three key changes under the government of Donald Trump, among others, tax cuts, reduced regulation and increase infrastructure spending. So far, the new Donald Trump reducing regulation.

Of US economic data, jobless claims less than expected. Jobless claims to 234 thousand from an estimated 249 thousand. In addition, the unemployment rate at 4.8 percent position. The unemployment rate is higher than the position of November 2016 in the range of 4.6 percent.

 

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In Europe, the political risk is increasing. Especially the presidential elections in France. In addition, the European Central Bank president Mario Draghi stated that the EU economy and inflation is still not strong. This may encourage it to push monetary stimulus.

Indonesia also covered internal sentiment is quite good. On February 8, 2017, the rating agency Moody’s improve Indonesia’s rating to positive. In addition, Moody’s also affirmed the rating at Baa3 (investment grade) for debt securities.

In addition, Indonesia’s foreign exchange reserves reached US $ 116.9 billion in January 2017. Indonesia’s economic growth was recorded 5.02 percent in 2016. However, Indonesia’s economic growth was lower than expected in the fourth quarter of 2016. Economic growth was recorded 4.94 per cent of the year on year .