Jakarta. The Indonesian stock market reached the Rp 12,000 trillion ($740.6 billion) milestone this week, with inflation remaining within Bank Indonesia's target.

According to data from the Indonesia Stock Exchange (IDX) for April 29th to May 3rd, 204, market capitalization increased by 2.2 percent to Rp 12,012 trillion from Rp 11,754 trillion the previous week.

The Indonesian Composite Index also rose by 1.4 percent to 7,134 from 7,036 at the end of the previous week.

The average daily transaction value surged by 9.78 percent to Rp 14.95 trillion from Rp 13.62 trillion last week.

Although daily transaction frequency increased by 0.43 percent to 1.07 million times from 1.06 million times last week, the volume of daily transactions decreased by 3.27 percent to 18.59 billion shares from 19.22 billion shares last week.

On Friday, foreign investors recorded net sell transactions of Rp 859.52 billion, reducing their net buy value for 2024 to Rp 4.49 trillion.

Pilarmas Investindo Sekuritas stated that the Indonesian Composite Index experienced fluctuations due to external and internal factors. Externally, it moved in line with Asian stock indexes, which strengthened alongside the rise of US stock indexes.

On the domestic front, Pilarmas noted that the Central Statistics Agency (BPS) reported April 2024 inflation at 0.25 percent (month-to-month), maintaining the annual inflation rate at 3 percent (year-on-year). Core inflation in April 2024 was recorded at 0.29 percent, higher than the previous month's 0.23 percent.

Meanwhile, Wall Street capped a choppy week of trading Friday with the best day for the stock market in over two months, as traders welcomed cooler-than-expected U.S. employment data as a sign that inflationary pressures on the economy are easing.

The S&P 500 rose 1.3 percent, its best day since late February. The benchmark index also erased its losses for the week.

The Dow Jones Industrial Average rose 1.2 percent. The Nasdaq composite ended 2 percent higher, reflecting strong gains by technology sector stocks, which accounted for much of the rally.