T

he Jakarta Composite Index (JCI) closed at 5,438.65 in the afternoon on Monday, increasing 0.77 percent or 41.80 points compared to the opening ahead of the monthly macroeconomic data announcement scheduled for April 1.

'€œInvestors have positive expectations ahead of the announcement of domestic economic data in April. This has strengthened the composite index,'€ Asjaya Indosurya Securities analyst William Surya Wijaya was quoted as saying by Antara news agency on Monday.

Meanwhile, the 45 most liquid stocks (LQ45) index strengthened by 4.68 points (0.50 percent) to 942.18.

William predicted that inflation in March would remain stable, while Indonesia'€™s trade balance was expected to record a small surplus. On the other hand, financial reports by issuers in the 2014 fiscal year also tended to record growth, he said.

'€œSuch positive expectations have pushed the JCI back into positive territory. Technically, the JCI index has the potential to head for the 5,444 level,'€ he said.

In a related development, Valbury Asia Securities research section head Alfiansyah said that US Federal Reserve chief Janet Yellen'€™s remarks on her interest-rate hike policy had shadowed the movement of global stock market indexes, including the JCI.

Yellen said the Fed was serious about raising its interest rates and that the hikes would depend on economic data. If soon-to-be released data failed to meet expectations, the policy would be readjusted.

'€œThe rate hike in June remains under the Fed'€™s consideration, but there is a '€˜dovish'€™ stance on the part of the Fed, indicating that a rate hike may happen in September or later,'€ Alfiansyah said.