Weekly Composite Index Rises 0.25% to 324.4

Domestic financial market performance has shown renewed vigor. This is driven by investor optimism regarding national economic growth and the appreciation of the Indonesian Rupiah against the US dollar.

Investors are once again seeking both government and corporate bonds. As a result, bond prices rose last week. On the other hand, bond yields decreased.

Profit-taking by investors following several days of gains fueled by positive economic growth sentiment led to a correction in bond prices at the end of last week.

The Indonesia Composite Bond Index (ICBI) of the Indonesian Capital Market Supervisory Board (Bapepam-LK) closed down 0.2661 (0.08%) at 324.3599 at the end of last week (August 6th), compared to the previous closing. However, cumulatively, the ICBI still recorded an increase of 0.8112 points (0.25%) from the previous week's close.

The INDOBeX Government Total Return Index closed up 0.8042 points (0.25%) at 318.0991 at the end of last week compared to the previous week. Similarly, the INDOBeX Corporate Total Return Index rose 0.7576 points (0.21%) to 354.4305 compared to the previous week.

Last week, the Central Bureau of Statistics (BPS) released data showing that Indonesia's economy grew by 7.07% in Q2 2021 compared to Q2 2020 (year-on-year/yoy) and by 3.31% compared to Q1 2021 (quarter-to-quarter/q-to-q). Cumulatively, the national Gross Domestic Product (GDP) for the first half of 2021 also grew by 3.1% compared to the first half of 2020 (cumulative-to-cumulative/c-to-c).

Quoting Bloomberg, the Rupiah closed weaker by Rp 10 per US dollar at the end of last week, reaching Rp 14,352.5 per US dollar. Meanwhile, the Jakarta Composite Index (JCI) closed at 6,203.43 at the end of last week, up 133.39 points (2.2%) from the previous week's close.