The Fed decided to continue the purchase of securities

The Fed decided to continue the purchase of securities

Market participants responded positively to the decision to continue with the purchase of Federal securities amounted to U.S. $ 85 billion per month . Today, the stock market and the exchange rate looks significantly strengthened .

Indonesian stock market , stock price index ( JCI ) rose sharply 207.4 points ( 4.65 percent ) to 4670.73 position . The index recorded its highest level of 4791.76 .

During the transaction , trading volume reached 19.8 million lots worth Rp12 , 2 trillion, with a frequency of 287 thousand times . A total of 270 stocks rose , 60 fell , and 70 stocks unchanged .

The whole sectoral stock index rose to the highest growth in the property sector , which rose 9.18 percent . Followed by the financial sector index gained 6.31 per cent and 5.5 per cent of basic industries .

Analyst PT Panin Securities Tbk , Purwoko Sartono , said CSPI increased significantly driven by the surprise decision from the Fed . The U.S. central bank was canceled reduce stimulus previously estimated at U.S. $ 10-20 billion .

" The Fed is still waiting for a signal that ensures the current economic recovery is not only temporary , " said Purwoko .

In addition , the Fed wary of rising interest rates that could threaten the sustainability of the economic recovery in the U.S. . Because , he said , since the emerging discourse of stimulus reduction , rising interest rates from a record low 1.4 percent in July 2012 to 2.99 per cent per 13 September 2013 .

The Fed also cut its forecast for economic growth this year from 2.3 percent to 2 percent . Meanwhile , for the next year , economic growth was revised from 2.6 percent to 2.3 percent .

" Global Exchange also hit sentiment stimulus delay reduction ," he said .

Rupiah under Rp11.000
In addition, the direct exchange rate rose sharply . However , investors are reminded that the strengthening of the rupiah today not because of macro- economic improvement , and reduction of stimulus sooner or later it will happen .

" So , this gain is only short term , " he said .

As of this afternoon , the exchange rate rose sharply to Rp10.855 per U.S. dollar . The rupiah exchange rate rose 469 points, or 4.14 percent .

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