Indonesia's Stock Exchange (IHSG) Closes Lower Following Regional and Global Stock Market Trends (Wednesday, May 17, 2023)

The Jakarta Composite Index (IHSG) fell 13.45 points, or 0.2%, to close at 6,663.114 on Wednesday (17/5/2023).

Today's decline in the stock index followed weakness in Asian and global stock markets.

"The IHSG and the majority of Asian stock exchanges are still influenced by negative sentiment, including data from the United States (US) and China economies, such as retail sales and industrial activity that are still below expectations, coupled with concerns about a US debt default," said Jono Syafei, Analyst at Henan Putihrai Sekuritas, as quoted by Antara, Wednesday (17/5/2023).

Market participants responded to the release of US April 2023 sales data, which rose 0.4%, below the consensus expectation of a 0.8% increase. The market assessed that consumer spending remains weak.

According to Jono, the market is concerned that this condition is an effect of The Fed's policy of continuously trying to curb inflation by raising its benchmark interest rate, with several Fed officials warning that the bank may take further action to lower inflation.

On the other hand, the market is also awaiting President Joe Biden's decision on the US debt ceiling policy, which must be decided before June 1, 2023.

Based on RTI Business data, the frequency of stock trading on the domestic exchange today was 1.28 million transactions.

A total of 31.23 billion shares changed hands, with a transaction value of Rp 10.8 trillion.

The stock with the code KING was the top loser, falling 10%, followed by NAYZ and HAJJ, which contracted by 9.93% and 9.57%, respectively.

Meanwhile, the top gainer today was MPOW, which strengthened by 35%, followed by SICO and SMKL, which strengthened by 19.53% and 17.37%, respectively.

The majority of stocks closed lower today. Specifically, 331 stocks weakened, 201 stocks strengthened, and 210 stocks were stagnant.

Regional Asian stock exchanges this afternoon include:

* Nikkei Index rose 250.60 points or 0.84% to 30,093.60
* Hang Seng Index fell 417.68 points or 2.09% to 19,560.57
* Shanghai Index fell 6.76 points or 0.21% to 3,284.23
* Strait Times Index fell 40.20 points or 1.25% to 3,173.84