JSX shares gain ground on surge in Wall Street
JSX shares gain ground on surge in Wall Street
JAKARTA (JP): Trading on the Jakarta Stock Exchange (JSX)
gained ground yesterday on the back of psychological support from
an increase in the Dow Jones Industrial index and a sustained
buying of selected blue chips, brokers and securities analysts
said yesterday.
The Dow Jones industrial index rose by 143 points to 7.214
Monday sending good sentiment to regional markets including
Indonesia's, the brokers said.
The JSX composite index rose by 6.81 points to close at 659.60
yesterday with 198.16 million shares changing hands on a total
transaction value of Rp 393.18 billion (US$ 163.82 million).
Brokers said the rise on Wall Street was triggered by an
expectation that the next Federal Open Market Committee (FOMC)
meeting on May 20 would not further raise interest rates.
"This motivated foreign investors to buy on selected blue
chips yesterday," managing director of Harita Securitas,
Christina Lim told The Jakarta Post yesterday.
She said even if foreign investors were still cautious about
the election campaign or feared riots before the general election
on May 29, the sustained interest from local investors on medium
sized stocks would prevent the index price from dropping.
"Local investors continue to target selected second line
stocks," she said.
"Investors may expect some correction before the election, but
concerns about political stability are lessening now," Lim said.
A Harita Securities broker said the country's rating agency PT
Pemeringkat Efek Indonesia's positive outlook on toll operator
Citra Marga Nusaphala Persada also attracted a good response from
investors.
Bank Negara Indonesia gained by Rp 25 to close at Rp 1,500,
Indosat by Rp 225 to Rp 7,100 and Telkom by Rp 50 to Rp 3,600.
In the currency market, the rupiah ended firmer against the
dollar in quiet trading yesterday.
Money market dealer said trading was relatively dull on
liquidity anticipation.
Spot rupiah was at 2,424.25/24.75 against an opening of
2,424.50/25.50 in the morning yesterday. (09)