Indonesian Composite Index Rises, Hits 7,003 in Early Trade on Tuesday, November 21, 2023

The Composite Stock Price Index (CSPI) at the Indonesia Stock Exchange (IDX) showed a strengthening performance in early trading on Tuesday, November 21, 2023, with an increase of 0.13% reaching the psychological threshold of 7,003.88 points. This marks a significant moment as the CSPI crosses the 7,000 level after a two-month hiatus, indicating a positive start for the trading day.

Momentum for Investors

NH Korindo Securities Indonesia (NHKSI) suggests that the CSPI's regaining of the 7,000 level could be a signal for investors to consider averaging up on portfolios that have surpassed their respective resistance levels. While the CSPI's position could not maintain the stability needed to break through resistance levels by the closing, it underscores a bullish sentiment that is advised to be acted upon strategically.

Investors are advised to wait for a more solid establishment of the index above the 7,000 mark before considering increased buying activity. The upward trend in the market is expected to continue, influenced by key factors including the trend of US interest rates and the upcoming Bank Indonesia board of governors' meeting scheduled for the approaching Thursday.

Global Market Movements

Internationally, the Dow Jones Industrial Average saw a 0.6% rise, with the S&P 500 jumping 0.8%, and Nasdaq leading gains at 1.1%. This surge is mainly in anticipation of the minutes from the Federal Reserve’s meeting and Nvidia's performance report, both of which hold substantial influence on the technology sector.

Economic Indicators and Commodity Prices

Investors have largely factored in the possibility that the Federal Reserve will hold interest rates steady in its December FOMC meeting, with an estimated 100% chance. Moreover, recent housing sales data from the US are expected to show little variance from previous figures. Meanwhile, China maintains its benchmark interest rates at 4.20% for long-term loans and 3.45% for short-term ones. In South Korea, the producer price index eased to 0.8% year-over-year as of the latest report, compared to 1.4% in September.

In the commodities space, oil prices climbed over 2% on Monday, driven by speculations that OPEC+ may consider maintaining or intensifying production cuts in their upcoming meeting. With Brent futures closing at $82.32 a barrel, up by 2.1%, and WTI December contracts at $77.6 a barrel, rising by 2.3%, the market is watching for OPEC+'s decision closely.

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