REPUBLIKA.CO.ID, JAKARTA -- The US central bank finally decided to raise interest rates (Fed Funds Rate) for the first time since 2006 by 25 basis points in the range of 0.25 percent-0.5 percent. In trading today, Thursday (17/12), Composite Stock Price Index (IHSG) was predicted to rise due to lower market risk after the increase of the Fed Funds Rate.

Shares analyst of First Asia Capital (FAC) David Sutyanto said, the reinforcement would be supported mainly by stocks that are sensitive to interest rate, such as banking and property.

"While the commodity-based stocks tend to be depressed due to the falling of crude oil prices. IHSG is expected to move in the range of 4,440 to 4,550," he explained, Thursday (17/12).

While, buying dominated stock trading on Wednesday (16/12). According to David, this is in line with low risk of global and regional stock markets.

At yesterday closing, IHSG was successfully closed at the daily highs in 4483.453 points or gained 74.281 points, or 1.68 percent. IHSG strengthening was in line with the strengthening that occurred in Asian stock markets.

"As reflected in the rise in MSCI Asia Pacific Index of 2.2 percent at 129.42, the Foreign funds tend to go out in the last few days with a net purchase of up to Rp 302.18 billion," said David.

According to him, the purchase mainly targeted a number of leading stocks which engaged in banking and infrastructure. The rebound of crude oil prices also helped carry back the share price, especially in coal mining sector.

"The positive sentiment on global stock markets is mainly triggered by speculation of interest rate hikes of the Fed Funds Rate," David added.

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