'€œIn stock movement theories and expectations on either good or bad changes in the country will become an influencing factor. Thus, good expectations among market players will lead the capital market industry to be positive in the future,'€ said Mandiri Sekuritas equity research head John Rachmat in Jakarta on Monday, as quoted by Antara news agency.

He acknowledged that ahead of the election, the political factor had strongly influenced the market movements. However, this would be pseudo-influence in nature if not supported with strong economic fundamentals.

'€œIn May, the economic fundamental factor will really become the main focus. In that month, Indonesia'€™s economic data for the first quarter of this year will be released and I expect the Indonesian economy to still grow,'€ said John Rachmat.

The analyst further said one factor leading to the assumption that the Indonesian economy would grow in the first quarter of 2014 was a high increase in consumption during election year.

'€œIn every election, funds will flow into the consumption sector, so this year, Indonesia'€™s economic growth should be higher than the previous year,'€ he added.

According to John Rachmat, positive expectations of a new leader who will create financial market-friendly policies have emerged. It is also hoped there will a good policy related to the recently issued raw ore export ban policy that could disturb the work of publicly listed mining companies.

On the stock market, the analyst said Mandiri Sekuritas projected the JCI would still reach 5,550 points if the elected Indonesian president matched market expectations. (ebf)

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