Indonesia's IHSG Remains Positive Throughout 2022 Amidst Regional Market Slump

High inflation, the strengthening of the US dollar against world currencies, and the threat of a global recession have weighed on the movement of stock prices on regional exchanges.

The threat of inflation affecting many countries has prompted central banks to raise interest rates. This is one of the causes of the fall in regional stock market indices.

The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange is still moving in positive territory towards the end of the year amid the slump in regional stock market indices. Accumulatively, from January 3 to December 21, 2022, the IHSG still recorded a 3.63% (ytd) increase to 6,820.66.

Economic growth still above 5%, controlled inflation, and a trade surplus continue to provide optimism for investors to remain invested in the Jakarta Stock Exchange.

Exports of Indonesia's main commodities such as palm oil, coal, nickel, rubber, and others have supported Indonesia's trade balance, recording a surplus of US$50.59 billion or Rp758 trillion from January to November 2022.

The Dow Jones Industrial Average (US stock exchange), a barometer of the world's stock exchanges, fell 8.15% this year to 33,376.48.

Similarly, Asian stock market indices also experienced corrections from January to December 2022. The SET Index (Thailand) fell 2.78% to 1,611.62. The FTSE Bursa Malaysia KLCI (Malaysia) corrected 6.88% to 1,459.72.

The Nikkei 225 also fell 8.35% this year to 26,387.72. The PSEi (Philippines) fell 8.45% to 6,520.8. The Shanghai Composite also corrected 15.7% to 3,068.41.

The Hang Seng Index (Hong Kong) fell 18.11% this year to 19,160.49. The KOSPI (South Korea) fell 1.79% to 2,328.95, and the VN Index (Vietnam) also plummeted 32% to 1,018.88.