IHSG Strengthens to 7,003 Points in Early Tuesday Trade

On Tuesday, November 21, 2023, the Composite Stock Price Index (IHSG) at the Indonesia Stock Exchange (IDX) started the trading day on a positive note, with a slight gain of 0.13%, reaching 7,003.88 points. This move marks a return to the psychological benchmark of 7,000 points for the first time in two months, suggesting a cautiously optimistic sentiment among investors.

Market Analysts Weigh In

Market experts from NH Korindo Sekuritas Indonesia (NHKSI) have indicated that while the IHSG has reached this significant level, it remains to be seen whether it can sustainably break through the next resistance levels. The upcoming monetary decisions by the US Federal Reserve and the Bank Indonesia's board of governors' meeting scheduled for the following Thursday are anticipated to heavily influence the market's direction.

NHKSI recommends that investors take advantage of the current bullish momentum to potentially increase their positions in stocks that have already breached their respective resistance levels. They also suggest a more aggressive purchasing strategy post the firm establishment of the 7,000-point level.

Global Market Influences

International markets are also contributing to investor sentiment. The Dow Jones Industrial Average saw an increase of 0.6%, the S&P 500 went up by 0.8%, and the Nasdaq took the lead with a 1.1% rise, ahead of the Federal Reserve's minutes release and Nvidia's performance report, which are expected to impact the technology sector's trajectory.

There is also a nearly unanimous expectation that the Fed will maintain interest rates in its December FOMC meeting. Market participants are closely monitoring the upcoming US Existing Home Sales data, which is forecasted to remain relatively unchanged.

Regional Economic Updates

In Asia, China's central bank has held its benchmark interest rates steady, while South Korea reported a dip in its producer price index growth. Meanwhile, the oil market has also seen more than a 2% increase as traders anticipate decisions from the upcoming OPEC+ meeting regarding production cuts, with Brent crude futures closing at US$ 82.32 a barrel and WTI December contracts at US$ 77.6 a barrel.

IHSG, IDX, stocks