Finance Minister Purbaya Optimistic IHSG to Rally Strongly Next Week

Jakarta — Finance Minister Purbaya Yudhi Sadewa expressed optimism that the Jakarta Composite Index (IHSG) will rebound next week as the national economy’s fundamentals improve. He said the IHSG could surge next week after previously hovering around the 5,900 level. ‘From a technical perspective, I think next week it will run fast,’ Purbaya told reporters at the Presidential Palace complex in Jakarta on Friday. He asked market participants not to worry about current stock-market conditions, saying the government would continue to strengthen the national economy going forward. Purbaya added that the IHSG rebound is only a matter of time because Indonesia’s economic fundamentals remain solid. ‘So it’s just a matter of time, not long if I’m not mistaken, until the IHSG price will rebound again,’ he said. He explained that stock price movements ultimately depend on company fundamentals and the overall economy. If the economy improves, profitability will rise, and stock prices should move higher. ‘That will start with the economy’s fundamentals. If the economy is good, profitability rises. So it shouldn’t be possible that a profitable company’s shares fall. That means they are undervalued; buying them will surely yield profits,’ he said. The IHSG closed on Friday afternoon higher, supported by rebounds in energy and basic materials stocks. The IHSG finished up 67.11 points, or 1.10%, at 6,162.05. The LQ45 index rose 4.04 points, or 0.66%, to 620.44. The index had previously dipped to 5,966.86 amid the session, with almost all sectors finishing in the green. (Ant)