Indonesian capital market gains greater confidence: Analyst

09 , 2016 | Source: Antara News

Foreign investors have greater confidence in the Indonesian stock market after better than expected data of the countrys economy in the second quarter of this year, analysts said.

 

"Foreign funds have continued to flow into the domestic market indicating greater confidence in our economy," market analyst William Surya Wijaya from Asjaya Indosurya Securities said here on Monday.

The countrys economy grew 5.18 percent in the second quarter of this year overshooting the targets set by Bank Indonesia and a number of analysts.

The Q2 growth surged from 4.92 percent in the Q1 and brought the countrys economic growth rate to 5.01 percent in first half of the year.

Meanwhile, the Indonesian Stock Exchange (BEI) recorded Rp33.19 trillion in total foreign net buy from early this year until Monday.

William said the economic data is expected to keep the rising trend of the BEI index (IHSG).

Based on the BEI data, the IHSG rose 18.85 percent year to date or 865.97 points to 5,458.98 points so far this year.

The IHSG year to date growth was higher than indices recorded by most stock markets in the world .

The Philippines recorded a growth of only 14.98 percent, Britains market 8.99 percent, India 7.91 percent, Australia 5.26 percent, the U.S.Dow Jones 5.34 percent, South Koreas KOSPI 3.56 percent and Hong Kongs Hang Seng 2.65 percent.

IHSG growth was lower only than that of Thai index of 19.74 percent.

The rising trend of IHSG helped push up the market capitalization in the domestic market to the level of Rp5,879.82 trillion by 8 August 2016.

The BEIs President Director Tito Sulistio has said he was optimistic the market capitalization would cross the level of Rp6,000 trillion in 2016 with growing number of companies launching Initial Public Offering (IPO).

"Currently seven companies are in the process of launching IPO. If the process run smoothly the market capitalization of our capital market would exceed Rp6,000 trillion," he said.

Market capitalization is the value of securities listed on the stock market.

The Jakarta composite index closed 0.71 percent higher on Monday driven by positive sentiment of the countrys economic growth in the second quarter of this year.

On Monday, the IHSG rose 38.73 points closing at 5,458.97 with index of 45 most liquid stocks up 0.92 percent to 940.76.

The data of the countrys economic growth still was still main sentiment in trade in the first trading day of this week, analysts said.

 

The South Korean Government under President Moon Jae-in`s administration is trying to strengthen South Korea`s diplomatic relations with Indonesia and other ASEAN member countries, said Choe Won-gi, Head of the Korean National Diplomatic Academy.
The North Maluku Cultural Heritage Preservation Office (BPCB) will collect data on prehistoric cave paintings existing in 36 caves on Kisar Island, Southwest Maluku District, Maluku Province, on Nov 14-28, 2018.
President Joko Widodo (Jokowi) held a bilateral meeting with Vietnamese Prime Minister Nguyen Xuan Phuc on the sidelines of the International Monetary Fund (IMF)-World Bank (WB) Annual Meeting in Nusa Dua, Bali.
World Bank President Jim Yong Kim said he appreciated Indonesia`s commitment to host the annual meeting of the International Monetary Fund and the World Bank after it was repeatedly hit by major earthquakes and tsunami.
President Joko Widodo (Jokowi) has outlined four priorities in handling efforts to rescue and assist victims of the magnitude-7.4 earthquake and a subsequent tsunami in Palu, Donggala, Sigi, and Parigi Moutong districts, Central Sulawesi Province.
The world did not need to seek a superhero in realizing world peace besides a global leadership of all nations and shared responsibility, according to Indonesian Vice President Jusuf Kalla.
Address: 1068 Budapest, Városligeti fasor 26. | MAP |
Phone: (+36-1) 413 3800 Fax: (+36-1) 322 8669
E-mail: embassy@indonesianembassy.hu