Indonesia’s financial market was seen strengthening on Wednesday (26/1) trading, although it continued to be battered by negative sentiment from all over. Recently the political tensions between Russia and Ukraine were heating up. This is what causes market tensions.
Most recently, the Indonesia Composite Index (IHSG) closed at a positive number while the majority of SBN also closed higher. However, the Rupiah is still moving stagnant.
The details are, the IHSG closed up 0.5% at the level of 6600.82 on Wednesday (26/1/2022). This index figure briefly weakened to the red zone during the first trading session and then strengthened again an hour later before the closing of the IHSG rebounded and finished in the green zone.
According to records, the transaction value was Rp. 13 trillion, but foreign net sales were thin at Rp 106 billion in the regular market. The movement of the IHSG is closely related to Asian stock markets which also reversed towards the green zone. The move to the green zone was led by the Straits Times Index which rose after appreciating 0.92 percent.
On the other hand, the price of the majority of government bonds or Government Securities (SBN) also strengthened when they closed on Wednesday (26/1).
The yield on 10-year government bonds, which is the benchmark yield on government bonds, rose 0.3 basis points (bps) to 6.411%, while the yield on 30-year government bonds rose 0.3 bps to 6.889%. This data is taken from Refinitiv.
The yield of 15-year and 25-year SBN was observed to be stable or the same as the previous trading level, namely at the level of 6.403% and 7.241%.
Referring to the Rupiah data which had strengthened in early trading, it turned out that this currency closed at Rp. 14,350/US$, stagnant with previous sales.
Bank Indonesia had a hand in strengthening the Rupiah because they did many interventions. Foreign exchange reserves in December were recorded at US$ 144.9 billion, which can be used for triple intervention, namely intervention in the Domestic Non-Delivery Forward (DNDF) market, in the spot market, to the Government Securities (SBN) market.