JAKARTA (Yosefardi) – Composite index of the Indonesia Stock Exchange (IDX) gained 0.7% to 5148 at early trade this morning following regional markets.
Asia markets climbed as traders responded to a rate cut late last week by China’s central bank, along with signs the ECB is prepared to unleash deeper stimulus measures, Reuters reported.
Nymex’s crude oil gained 1.19% to US$76.49 per barrel in Asian trading and gold rose 0.89% to US$1,197.70 per ounce.
Adaro Energy rose 1.4%, Bumi Resources climbed 1.08%, Aneka Tambang increased 1.53%, Vale Indonesia gained 2.08%, and Timah jumped 3.24%.Astra International also hiked 2.16%, Bank Negara Indonesia lifted 1.3%, Bank Mandiri gained 1.45%.
Last week foreign investors booked net buy of Rp1.35 trillion for local stocks. Regional and global factors helped boosting local market last week. For this week, such a further gain is there but a reversal would be if no other positive news emerged.
Some might wait the inflation data for this month while other might opt to accumulate local stocks until end of this year on hope the economy to grow further next year.
The government prefers to rely on foreign direct investment to support the 5.8% economic growth next year with a consequence of increasing foreign debts which reached US$292.3 billion as of September 2014, grew by 11.2% from US$262.9 billion as of September 2013.
Window dressing, a scheme to make up the portfolios of investment managers ahead of this year’s end, might also support the market’s gain this week. The window dressing starts to occur from late November.
The recent fuel price hike would continue impact on property and banking stocks but boost the buying in infrastructure stocks as the fuel subsidy will fund the infrastructure projects.