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Govt's economic package boosts JCI
Amid a major correction in the regional equities market, the Jakarta Composite Index (JCI) shot up 1
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mid a major correction in the regionalequities market, the Jakarta Composite Index (JCI) shot up 1.41 percent or 57.9points to 4,178.4 at Tuesday's close, thanks to the newly released second economicpackage that boosted investors' confidence.
An analyst at Indo Premier Securities Ikhsan Binarto said the new economic package showed that the government was serious about maintaining the gross domestic product (GDP) growth, even though the rupiah was depreciating against the US dollar.
'Besides the good sentiment in the market, which came from the economic package, the fund managers seemed like they were launching the 'window dressing' strategy to reshape their portfolio,' he told thejakartapost.com.
"Window dressing" is a strategy used by mutual fund and portfolio managers to reshape the performance of the portfolio or fund that they manage near the end of the year or quarter, by buying stocks they own to increase the price, which ultimately raises the return of their fund.
Therefore, Ikhsan continued, the negative sentiments that suppressed the regional market did not hamper Indonesia's stock market. Japan's Nikkei 225 Index dropped by 4.05 percent, Hong Kong's Hang Seng dropped by 2.97 percent and Singapore's Straits Times declined by 0.45 percent.
Eight of 10 sectoral indices on the Indonesia Stock Exchange (IDX) gained, led by the Consumer Industrial Index. On the other hand, two sectoral indices were down, the Basic Industry Index and Agricultural Index.
There were 7.7 billion shares that were traded worth Rp 5.45 trillion (US$371 million). One-hundred one stocks went up and 156 stocks went down. Seventy-four were unchanged.
Some of the leading stocks were PT Indofood CBP Sukses Makmur Tbk (ICBP) that rose by 9.33 percent, PT Summarecon Agung Tbk (SMRA), which grew by 9.18 percent and PT Bumi Serpong Damai Tbk (BSDE), which climbed by 7.6 percent.
