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Development of Covid-19 Vaccine Encourages Strengthening of IHSG

IHSG
IHSG

JAKARTA – The domestic stock market opened higher on trading Tuesday (17/11). The Jakarta Composite Index (IHSG) rose 0.50 percent to 5,522.58. Meanwhile, the LQ45 index rose 0.63 percent. 

Head of research for Samuel Sekuritas Indonesia, Suria Dharma, said the sentiment of the vaccine Covid-19 still drove the strengthening of the IHSG. “The development of the Covid-19 vaccine encourages market optimism,” said Suria, Tuesday (17/11).

In addition, he continued. The strengthening of the IHSG was also driven by the strengthening of the United States (US) stock market. The US stock market closed overnight in the green zone with the Dow Jones rising 1.6 percent, the S&P 500 up 1.17 percent, and the Nasdaq gaining 0.8 percent. 

Moderna reported positive results for the Covid-19 Vaccine trial with an effective level of 94 percent. This sentiment made share price Moderna’s closed up 9.5 percent in overnight trading. Dow Jones again scored an all-time high of trading to the level of 29,950.

Domestically, the strengthening of the IHSG also received support from Indonesia’s trade balance in October. Which was a surplus of 3.61 billion US dollars. This surplus was the result of a decrease in imports of minus 26.9 percent. And a decrease in exports of minus 3.3 percent. 

The Rupiah exchange rate strengthened to a level of Rp 14,110 per US dollar. With a strong rupiah exchange rate, according to Suria. The market is waiting for the direction of the Bank Indonesia (BI) benchmark interest rate policy which will be decided at the Board of Governors Meeting (RDG) Thursday (19/11). 

Suria also predicts the IHSG will move at the end of today’s trading. “The positive sentiment for Moderna’s vaccine and the strengthening of the US stock exchange is expected to have an impact on today’s IHSG trading,” Suria concluded to the media.

 

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