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Indonesian stocks rally to record high as foreign investors buy
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The trading floor of the Indonesia Stock Exchange (IDX) in Jakarta. (JP/Wienda Parwitasari)
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ndonesian stocks rallied to record high, as foreign investors continued to buy local stocks after biggest daily net inflow in five months.
The Jakarta Composite Index rose as much as 0.7 percent to an all-time high of 5,557.98 before trimming its gains to 0.2 percent. Foreign funds bought $138 million of Indonesian stocks on Thursday, biggest daily inflow since Oct. 10.
“Speculation that Indonesia is going to get its ratings upgraded by S&P has been boosting foreign investors’ interest,” Jemmy Paul, investment director at PT Sucorinvest Asset Management in Jakarta, wrote in a text message. “Foreign buying continues today.”
PT Bank Rakyat Indonesia jumped 3 percent, providing benchmark with its biggest boost. A gauge for financial stocks rose 1.1 percent, the most among 9 industry measures in the Jakarta Composite. A possible ratings upgrade will also lure foreign investors to continue buying Indonesian bonds, Goldman Sachs Group Inc. said in a note.
