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JCI opens higher on global growth, domestic policy hopes
The Indonesia Stock Exchange: (idx
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The Indonesia Stock Exchange: (idx.co.id) (idx.co.id)
The Indonesia Stock Exchange: (idx.co.id)
Domestic and external positive sentiments have boosted the Indonesia Stock Market (IDX) with share prices opening higher on Wednesday.
The Jakarta Composite Index (JCI) strengthened by 28.89 points, or 0.67 percent, to 4,347.48 while the index of 45 most liquid stocks, or LQ45, was up by 7.39 points (1.02 percent) to 734.02.
Valbury Asia Securities head of research Alfiansyah said global stock markets, which were mostly strengthening, and hopes that the government would announce an economic policy package today had helped the JCI to make some positive ground.
'The sentiments have been a fresh impetus for market players to accumulate stocks again, supporting the JCI's increase,' he said in Jakarta on Wednesday as quoted by Antara.
Alfiansyah said the Finance Ministry was now ready to reorganize several government regulations (PP) and finance minister regulations (Permen) that had hampered economic and investment activity. The ministry was also planning fiscal stimulus measures aimed at the business world.
Still, the analyst said, the domestic stock market continued to be threatened by foreign outflows following the US Federal Reserve's (Fed) looming fund rate hike. He said an increase in the Fed fund rate could influence the economy of developing countries.
Meanwhile, LBP Enterprise senior analyst Lucky Bayu Purnomo said the government's policy package was aimed at increasing industrial competitiveness and accelerating the realization of strategic projects, which would hopefully balance any negative impacts of a Fed fund rate hike.
'It is hoped that through the policy package, Indonesia's economy can move and grow in the second semester,' he said.
In regional markets, the Hang Seng Index strengthened by 456.93 points (2.15 percent) to 21,715.97, the Nikkei Index was up by 858.39 points (4.93 percent) to 18,282.63 and the Straits Times Index increased by 7.84 points (0.26 percent) to 2,892.93. (ebf)
