Illustration of the Composite Stock Price Index. (CNN Indonesia / Adhi Wicaksono)

Good Economic Growth, Composite Stock Price Index Strengthened in the Second Quarter

Estella Claudia
Market & Investment
Indonesia Market
Aug 06, 2019
2069
Jakarta, Indonesia - According to Indosurya Sekuritas analyst William Surya Wijaya, on Monday (5/8) the Composite Stock Price Index (CSPI) is predicted to increase in the trading market. The level of economic growth is expected to be still excellent in the middle of global turmoil, and shows that Indonesia's economic fundamentals are well maintained, including the investments in the country that is getting stronger.

It is reported that the sentiment that supported the pace of economic growth in Indonesia was a slowdown in the global economy, triggered by the weakening world trade due to the US-China trading war. This condition affected Indonesia's export and import performance and increased the trading activities in Indonesia.

Not only the economic growth, William also stated that he saw the potential for the increased of rupiah exchange rate, as he predicted the index moves in the range of support 6,272 and resistance 6,488.

However, Artha Sekuritas Analyst, Dennies Christoper Jordan predicted that CSPI will be weaken in the second quarter, as the market was shrouded in fears of heating up the US-China trading war that is still occurred until now.

This statement is supported by US President Donald Trump's plan to impose an additional 10 percent tariff on Chinese import goods worth USD 300 billion starting on September 1, 2019. It is reported that Trump's decision has made foreign market participants sold their shares or nett in the entire market and reached IDR 579.39 billion last week.

Source: https://www.cnnindonesia.com/ekonomi/20190805073328-92-418346/ihsg-diprediksi-menguat-terangkat-data-ekonomi-kuartal-ii

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