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Jakarta Post

After bonds, equities expected to shine next year amid ease in trade war

  • News Desk

    The Jakarta Post

PREMIUM
Jakarta   /   Thu, December 12, 2019   /  02:49 pm
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Representatives of publicly listed companies visit the Indonesian Stock Exchange (IDX). Securities analysts estimate the Jakarta Composite Index (JCI) of the Indonesian Stock Exchange (IDX) will rise to between 7,000 and 7,200 next year. (JP/Supriyono Hemay)

Analysts recommend securities as good investments next year as the expected easing of the trade war between the United States and China and the recovery in the country’s business activities as a result of the government’s stimulus program will restore positive sentiment in the local stock market. Commonwealth Bank’s Indonesia head of wealth management and client growth, Ivan Jaya, said that stocks and equity funds would follow the success of bonds and could become interesting instruments for investment in the country in 2020. “The rule of thumb on investment in Indonesia is that after a bond rally, stocks will follow,” he said in a press briefing in Jakarta on Wednesday. Ivan said that while investments in stocks and equity funds struggled this year, investments in bonds thrived, with a year-to-date net inflow of almost Rp 120 trillion (US$8.5 billi...