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JCI to maintain growth in 2017: Manulife
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Room for opportunity: The trading floor of the Indonesia Stock Exchange (IDX) in Jakarta. (JP/Wienda Parwitasari)
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sset management firm Manulife Aset Manajemen Indonesia (MAMI) has forecast that the Jakarta Composite Index (JCI), the benchmark of the Indonesia Stock Exchange (IDX), could grow by a double-digit margin next year, on the back of anticipated recovery in several sectors, including commodities and automotive.
MAMI chief economist Katarina Setiawan said that higher commodity prices next year, supported by revival in other sectors, such as automotive and property, would help the JCI reach 6,000, 15 percent higher than this year’s average of between 5,200 and 5,400.
"The increase in commodity prices will create a trickle-down effect to the public's purchasing power. Thus, we expect a better outlook next year," she said on Wednesday.
Katarina also noted that external uncertainties, such as the recent victory of Donald Trump in the United States presidential election, would affect the Indonesian economy, at least until the second half of the year.
"After Trump announces his cabinet, everything will be clearer," Katarina said.
The JCI closed at 5,265.4 on Wednesday, down by 0.14 percent from Tuesday.
In July, the JCI poked above its psychological level of 5,000 for the first time this year following the Tax Amnesty Law’s endorsement.
It was the first time the JCI exceeded the 5,000 mark in 2016 and even led a surge in Southeast Asian shares. (hwa)
