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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