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)