Jakarta stocks hit all-time high<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The Jakarta Composite Index skyrocketed on Monday to the highest
\nlevel in the nation's history, as new investors from the United
\nStates and Europe entered the market seeking to capitalize on the
\nrising optimism.<\/p>\n
The Index moved full-throttle ahead and ended up by 22.877
\npoints, or 3.1 percent, at 753.692, the highest since the
\nbenchmark index began in 1982. It also recorded an all-time high
\nin volume of Rp 1.99 trillion (US$227 million).<\/p>\n
Previously, the highest level ever recorded by the bourse was
\n742.983 on July 9, 1997, one month before the financial crisis
\nhit the region.<\/p>\n
As always, shares in state-owned telecommunications company PT
\nTelekomunikasi Indonesia (Telkom) led the Index higher after its
\nAmerican Depository Receipts in the New York Stock Exchange
\nsurged by 4.7 percent to $18.45.<\/p>\n
Telkom shares, the largest counter on the Jakarta Stock
\nExchange, ended up by Rp 200 to Rp 7,700.<\/p>\n
Cigarette producer Gudang Garam, the second largest counter,
\nalso rose by Rp 500 to Rp 14,700 after the government told
\ncigarette producers to increase their output amid an absence in
\nthe increase of excise rates this year.<\/p>\n
Ferry Yosia Hartoyo, the head of research for PT DBS Vickers
\nSecurities Indonesia, said that the surge was mainly fueled by an
\ninflow of capital from new investors in the United States and
\nEurope, taking advantage of the growing market capitalization.<\/p>\n
He said that usually only Asian investors were interested in
\nthe country's stock market.<\/p>\n
\"The U.S. and European investors entered Indonesia because
\nthey see that now the stock market capitalization is growing to a
\nfigure that meets their requirement. Large market capitalization
\nwill enable them to rake in higher profits,\" said Ferry.<\/p>\n
However, he said that the investors were still limiting their
\ninvestment as they were waiting for the development in the
\ncountry's general election and in the government's efforts to
\nfinance the state budget deficit, which is estimated to reach Rp
\n24.4 trillion this year.<\/p>\n
If the country could pass all of the obstacles, the Index was
\nestimated to climb higher to even 800, he said.<\/p>\n
Elsewhere, Mirza Adityaswara, a stock analyst with PT Bahana
\nSecurities, said that 80 percent of the money which entered the
\nstock market on Friday was from foreign investors, making the
\nbourse overly sensitive to negative news, locally or globally.<\/p>\n
\"With such a huge amount from foreign investors, our stock
\nmarket remains sensitive to foreign investor sentiment, unlike
\nThailand which only has 30 percent of foreign funds in its stock
\nmarket,\" said Mirza.<\/p>\n
Aside from the influx of foreign funds, the surge in the Index
\nwas also caused by the optimism that pervaded stock markets
\nworldwide, Mirza said.<\/p>\n
Japan's Nikkei Index ended up 1.2 percent to 10,965, while the
\nU.S. Dow Jones industrial average rose by 63.41 points on
\nThursday, or 0.60 percent, to 10,592.44, its highest finish since
\nMarch 2002.<\/p>\n
Mirza was optimistic that despite a possible correction during
\nthe general election, the index would remain firm throughout the
\nyear because the country's macroeconomic situation was now
\nrelatively \"controllable\".<\/p>\n
Despite its limited direct impact on the country's overall
\neconomy, the rally of the index should be a measure to gauge
\ninvestor confidence in the country's economy.<\/p>\n
As for companies, the stable and high index figure can be an
\neffective source of funding and working capital, because the
\nstock market increase the value if companies.<\/p>\n
Elsewhere, thanks to capital inflows from foreign investors
\ninto the stock market, the Indonesian rupiah ended the day higher
\nat Rp 8,340 against the U.S. dollar. The rupiah ended at Rp 8,345
\non Thursday.<\/p>\n
10 largest brokers on Friday
\n(in terms of net value)<\/p>\n
Broker Value<\/p>\n
1. CLSA Indonesia Rp 197.6 billion
\n2. ING Securities Indonesia Rp 77.8 billion
\n3. ABN Amro Asia Securities Rp 76.8 billion
\n4. BNP Paribas Peregrine Rp 73.4 billion
\n5. DBS Vickers Securities Rp 61.9 billion
\n6. Bhakti Capital Indonesia Rp 50.8 billion
\n7. JP Morgan Securities Rp 36.9 billion
\n8. Semesta Indovest Rp 14.3 billion
\n9. Makindo Securities Rp 12.2 billion
\n10. GK Goh Indonesia Rp 12.2 billion<\/p>\n
Source: Bloomberg<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jakarta-stocks-hit-all-time-high-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }