Stocks Close Higher, Bank Stocks Lead
The Indonesian stock market extended its rally on Monday, with the Jakarta Composite Index (IHSG) closing up 54.94 points or 0.74% at 7,437.7. This marks the second consecutive day of gain for the index.
The rally was driven by strong buying of shares in Financials, specifically in banking stocks.
PT Alamtri Resources Indonesia Tbk (ADRO) recorded the largest net buy, withoreign investors purchasing IDR 217.8 Billion in shares. Other bank stocks, like PT Bank Central Asia Tbk (BBCA), PT GoTo Gojek Tokopedia Tbk (GOTO) and PT Bank Mandiri Tbk (BMRI) also observed considerable buying activities.
Net buy in BBCA reached IDR 209 billion, IDR 169.3 billion in GOTO and IDR 130 billion for BMRI.
Despite the positive trend, foreign investors continued to sell shares in PT Bank Rakyat Indonesia Tbk (BBRI), recording the highest net sell with a value of IDR 137.1 billion.
Window Dressing Lifts Market Sentiment
Analysts suggest that the recent rally is mainly fueled by the "window dressing" strategy, where investors portfolio adjustments are made at the end of the year, aiming to showcase a healthy portfolio performance. The Christmas rally – characterized by increased market activity – might have contributed positively.)
All Sectors Close Higher
All sectors observed gains for the day. The most significant gains were recorded in the Energy sector, which grew by 2%, followed by Transportation at 1.5%. The Technology sector was up by 1.4%, Property advanced 0.8%, and the Non-cyclicals closed up 0.8%.
A total of 330 shares recorded gains while 237 declined and 228 shares were stagnant.
The total transaction value reached IDR 44.67 trillion. Trading volume was recorded at 30.24 billion shares, with 1,271,807 changing hands.
* What are the key economic indicators that are boosting investor confidence in the Indonesian banking sector?
## Indonesia’s Stock Market on the Rise
**Anchor:** Joining us today to discuss the recent surge in the Indonesian stock market is financial analyst, Ms. Rina Dewi. Rina, thanks for being with us.
**Rina Dewi:** It’s a pleasure to be here.
**Anchor:** The Jakarta Composite Index saw a solid gain yesterday. Can you tell us what’s behind this positive momentum?
**Rina Dewi:** Absolutely. Yesterday, the IHSG closed at 7,437.7, marking a 0.74% increase, or roughly 55 points. This marks the second consecutive day of gains, indicating a continued positive trend in the market. The rally is mainly fueled by strong buying activity in the financial sector, particularly in banking stocks [[1](https://www.google.com/finance/quote/COMPOSITE:IDX)].
**Anchor:** Interesting. What are some of the potential factors driving the strength in banking stocks?
**Rina Dewi:** Several factors could be at play. Recent economic indicators have painted a positive picture for Indonesia’s economy, which may be boosting investor confidence in the banking sector. Additionally, potential interest rate hikes by Bank Indonesia could further benefit banks’ profitability.
**Anchor:** We’ll be keeping a close eye on these developments. Rina Dewi, thank you so much for your insights.
**Rina Dewi:** You’re welcome.
